The Cashback Extras initiative will target offers via its online and mobile banking platforms to Halifax current account holders based on their historical purchases
After clicking on the offer of choice and redeeming it in-store, customers will be paid cashback directly into their current account at the end of the following month – with no minimum amount required on cashback paid.
The launch will be supported with a multi-media advertising campaign created by Adam&EveDDB, while MEC is handling media planning and buying.
Participating retailers include Morrisons, Ocado, New Look, O2, Domino’s and Argos – each offering between 5 and 15 per cent cash back on purchases.
Halifax estimates Cashback Extras customers will be able to earn £100 in cashback on average per year – given the average cashback rate of 10 per cent.
Anthony Warrington, director of Halifax current accounts, says Cashback Extras was created to make the process of gaining deals from voucher sites, discount codes and loyalty cards “more rewarding” and less “hassle”.
The cashback scheme uses card linking technology from Cardlytics, which works with more than 400 banks, predominantly in the US, including Bank of America. Cardlytics says the simple activation of the cashback offers via debit and credit cards without the need to type in a code or print off a voucher has driven incremental sales growth of up to 30 per cent for some of its retailer partners.
The company hopes the Halifax partnership will help build on its consumer purchasing database to encourage retailers to join the scheme. Cardlytics already claims to have insight into the spending of 70 per cent of US households and is looking to increase its footprint in the UK.
Halifax’s launch comes just two weeks after Natwest announced its own “Cashback Plus” debit card, which offers 1 per cent cashback to customers when shopping at retailers such as Tesco (for a limited time only), BP and Caffe Nero.