Instant payments platform Cheddar has launched a new cashback system following a trial debut at the Pub in the Park food and music festival.  

The new feature allows users to earn up to 50% in cashback directly into their bank accounts when making purchases at partnering retailers both online and in-store. Some of these retailers include Ocado, Joe & The Juice, and Sports Direct.

The feature is embedded into the Cheddar app, and it works with debit cards, credit cards, and digital wallets such as Apple Pay and Google Pay. In order to ensure that the consumer and retailer both benefit from the cashback feature, the app uses customer spend data enabled by first-party consent to personalise its cashback offerings for users.

In essence, the app tracks where users prefer to shop and how often they do it, and it uses that data to provide tailored offers from retail partners. The cashback system helps retailers increase customer loyalty by encouraging them to shop more often.

The Cheddar payments platform launched in March 2022, and this new feature represents its very first expansion. According to the Cheddar website, the app supports automatic cashback with all major UK financial institutes, and the service is authorised and regulated by the Financial Conduct Authority. In order to redeem a cashback, users just need to check their balance in the cashback tab and hit a redeem button. Money is then sent to their linked bank account, usually in a few seconds.

The app cuts intermediaries by connecting the two parties sending and receiving payments, enabling a direct, near-instant payment process. Since the service doesn’t use cards at all, there’s no need for legacy processing fees and the use of sensitive payment data, which helps minimise fraud.

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