Britain’s beleaguered retailers have been given a powerful new tool to win customers and boost sales, with the UK launch of the cashback app Recash.
The free app has a simple, compelling pitch to consumers – it allows them to upgrade their bank card into a cashback card. It takes just seconds to turn any card into a cashback card, which will automatically transfer money back to the shopper whenever they buy something from a participating store.
For retailers, the technology is a potent ally that combines detailed information about individual consumers’ finances and spending with the ability to run precision-targeted cashback promotions.
Recash, which is regulated by the Financial Conduct Authority, is one of the first fintech apps to be allowed to access consumers’ financial data under the UK’s Open Banking initiative. Shoppers can register for free and anonymously for the service, which gives retailers a unique window on users’ bank transactions and shopping habits.
Though anonymous, this data offers a panoramic view of individual consumers’ tastes and spending patterns – including what and when they spend with rival brands.
Physical and online retailers can then use these insights to offer ‘supertargeted’ cashback promotions directly to shoppers through the app.
Balazs Zador, CEO of Recash, explains: “Offering shoppers cashback on their purchases is a tried and trusted way of attracting interest and boosting sales – but until now it has been fiddly and largely confined to online.
“By connecting directly with people’s bank accounts, Recash makes the process effortless. But that’s only half the story. Recash also offers retailers of all sizes unmatched insight into individual shoppers’ finances and spending patterns – enabling them to build up detailed profiles of both their own customers and their rivals’ customers.
“With the app then providing an immediate, personalised channel to the consumer, retailers using Recash can target the right customer with the right promotion, at the right moment.”
Previously only tech giants like Google and Amazon were able to accrue such granular detail of consumers’ tastes through their online search history. But Recash puts that power in the hands of retailers large and small, both on the high street and online.
Launched at the start of 2020 in Hungary, Recash has proved popular with retailers in a range of sectors. Early adopters include Hungary’s biggest DIY chain, a leading food delivery app as well as gym and pharmacy groups.
Balazs Zador adds: “After perfecting our technology in our home market, we’re ready to take Recash to the next level. The UK’s fintech sector is thriving, mature and competitive – making it a natural home for us.
“Our goal is to be a powerful partner for Britain’s retailers as the country moves into its post-Covid future. The lockdown has been brutal for high street retailers, and as they reopen their doors, we’re working to get as many people through those doors as possible, ready and willing to spend.
“We’re proud to be part of the Open Banking movement, which is giving consumers more control over their data and access to new and better banking services. Our technology will put more Pounds in people’s pockets and give retailers a vital leg up – it’s time for them to share the benefits of the banking revolution too.”