Advertising alternative payment services let a merchant give consumers a free or discounted product in exchange for opting into a marketing program — with the merchant getting paid by the advertiser behind the offer, not the consumer.
What's in it for each side
Merchants get partnerships with established brands, revenue that can exceed standard pricing, targeted marketing reach, and built-in chargeback protection since no card is actually charged for the free item. The tradeoff: consumers sometimes face real friction actually redeeming the offer.
Where this shows up most
Gaming, software, and subscription businesses have adopted this model the most. Offers get distributed through service providers and shown at competitor checkouts — when a shopper picks one up, the merchant behind it pays an advertising fee and gains a customer. Running the reverse — showing competitor offers on your own site — earns you a fee whenever a shopper engages with them.
Worth weighing honestly: customer appeal, how vulnerable the model is to market shifts, fit with your specific vertical, cost against alternatives, and long-term viability — which, despite promising growth, remains largely unproven at scale.