Retailers will give cashback in BITCOIN, fintech firm claims

Retailers will give cashback in BITCOIN, fintech firm claims

Forty retailers ‘will offer cashback in BITCOIN’ under scheme to let customers use QR codes to earn crypto-currency on purchases

  • Major UK retailers announce plans to give online shoppers cashback in bitcoin
  • Crypto rewards scheme will give Britons option to use QR-code based system
  • Customers can use app operated by London-based open banking firm Mode
  • Fintech company already has partnerships with LK Bennett and The Hut Group
  • The cashback payments will be jointly funded by Mode and its partner brands
  • It is expected to see customers receive from 5 to 10 per cent back on purchases 

Major British retailers are claimed to be among 40 companies who are set to give online shoppers cashback in bitcoin from next spring.

The crypto rewards scheme will give Britons the option to use a QR-code based system at the checkout, and is operated by London-based open banking firm Mode.

The fintech company already has partnerships with LK Bennett and about 30 brands owned by The Hut Group including Zavvi, Lookfantastic, MyProtein and ESPA.

Now customers at further unnamed companies using Mode’s QR system will be able to make cardless payments and earn bitcoin with online purchases from April 2022.

Mode claimed today that it was also partnering with Boots, Homebase and Ocado, but spokesmen for all three companies later denied being involved to MailOnline.

The deal between Mode and the unnamed retailers was completed through a global affiliate marketing network called Awin which represents a series of major brands.

The cashback payments will be jointly funded by Mode and its partner brands – and are expected to see customers receive from 5 to 10 per cent back on purchases.

The crypto rewards scheme is operated by London-based open banking company Mode

Customers will be able to browse cashback offers at participating retailers on the Mode app

Mode chief executive Ryan Moore said today that the development was a ‘major step in making the asset class more accessible to consumers of all demographics’.

He told MailOnline: ‘I am delighted to announce the development of our Bitcoin Cashback offering as a standalone product, following the fantastic response from our customers, and accelerating appetite for the cryptocurrency.

How will Mode’s bitcoin cashback system work?

The crypto rewards scheme via the Mode app will give Britons the option to use its QR-code based system at the checkout of 40 UK retailers. 

Customers will be able to browse cashback offers at participating retailers on the Mode app, before going to that retailer’s website to complete their purchase.

The bitcoin will be credited into the customer’s Mode account, where they can store the asset or use the company’s FCA-registered exchange to try to grow their bitcoin.

People will be able to make cardless payments and earn bitcoin with their purchases from April next year.

The cashback payments will be jointly funded by Mode and its partner brands and are expected to see customers receive from 5 to 10 per cent back on purchases.

‘This marks a major step in making the asset class more accessible to consumers of all demographics, ultimately bringing Bitcoin into the hands of millions of customers across the UK.’

The firm is also trying to take on bigger rivals with a platform of lower transaction fees and ‘instantaneous settlement’ for merchants, reported City AM.

Mode’s share price rose by 12.5 per cent yesterday ahead of the announcement this morning, although it has fallen by 22.3 per cent compared to its initial offering price in October 2020. 

Customers using the new system will be able to browse cashback offers at participating retailers on the Mode app, before going to that retailer’s website to complete their purchase.

The bitcoin will be credited into the customer’s Mode account, where they can store the asset or use the company’s Financial Conduct Authority-registered exchange to try to grow their bitcoin.

A Mode spokesman said that its bitcoin cashback ‘counters traditional loyalty and cashback programmes, which can offer rewards that are hard to withdraw, slow to redeem or irrelevant to the customer’.

It added that it was ‘turning legacy rewards schemes on their head by providing customers in the UK with the opportunity to build a stake in bitcoin, without taking on the risk of investing’.

The company said the expansion of the scheme is the next step in a ‘strategy to develop a next-generation loyalty scheme that offers relevant rewards with real value to consumers’.

And it said that the programme ‘will also enable retailers to boost loyalty amongst higher value demographics’.

LK Bennett is already a partner of Mode and is working with the firm on bitcoin cashback

Mode is an fintech company listed on the London Stock Exchange which states that it is ‘on a mission to build the world’s most disruptive ecosystem where exchanging value and growing wealth is seamless for all’.

Speaking last month, John Gallemore, chief executive of The Hut Group Ingenuity, told City AM: ‘We are constantly innovating and providing new solutions to THG brands and THG Ingenuity partners.

‘Mode’s payments solution will provide our customers with additional payment opportunities to suit their needs and is another step in the platform’s evolution.’ 

Bitcoin, which is the world’s biggest cryptocurrency, is hovering around the level of $60,000 (£45,000) at the moment, having more than doubled its value since the start of this year

Bitcoin, the world’s biggest cryptocurrency, is hovering around the level of $60,000 (£45,000), having more than doubled its value since the start of this year.

Cryptocurrencies have swelled in total value to more than $2.6trillion (£1.9trillion), putting them on par with the world’s most valuable stock, Microsoft.

Bitcoin reached a record $69,000 (£51,000) last Wednesday – and such fast growth is drawing in more investors, as well as gaining the attention of global regulators.

This week, Australian baseball team Perth Heat said it would pay its players in bitcoin and accept it for ticket and food sales amid a belief that it is ‘the future of money’.

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