I read about this recently somewhere, don’t remember.
Stores are thrilled at the development because it allows people to take stuff off the shelves, and the store has no risk. For that privilege they pay (this article said between 5-8%). Add that to the credit card skim of 2-3% and they’re basically pushing the stuff out at 10% off their retail - but it gooses sales significantly enough to make it worth their while.
In a way it’s like factoring, where businesses get paid a percentage of the receivables, and then it’s somebody else’s probably to actually collect. In this one the tables are turned, there’s a middleman taking a little slice on several billion in sales.
Stores are happy with a variety of price points: they sell for cash, they give up 2-3% for a credit card sale, now they give up another 5% for something else. The ones paying cash are subsidizing the rest, including me with my cash-back card.