Asda set to rival high street banks
Asda is the latest supermarket to dive into personal finance services, in a move that the supermarket states will ‘directly appeal to the millions of shoppers frustrated with gimmicky points-based reward cards offered by other retailers.’
This launch comes at a time when banks’ reputation among the consumer is at an all-time low, as the financial sector remains embroiled in a series of scandals over the last few weeks.
Kirsty Ward, head of Asda Money, commented: “Times are tough and we want to do more for the millions of people that shop at Asda every day. Financial products are important, but they shouldn’t cost the earth and you shouldn’t need to be an expert to buy one.”
“That’s why we’re launching the first supermarket unlimited cashback credit card. Times have changed and shoppers don’t want complicated points schemes or rewards that don’t translate into real every day savings.”
The new Asda Money Credit Card will offer: 1% unlimited cashback on Asda shopping and 1% cashback on Asda fuel; 0.5% unlimited cashback on all shopping outside of Asda.
The Asda Money Card has unlimited cashback that is redeemed monthly with no annual fee and APR of 14.9%. The card also offers 12 month 0% balance transfer offer and up to 50 days interest free credit and no cash advance fees on Asda Travel Money.
The launch of Asda Money follows the supermarket’s entry last month into Britain’s cosily-run energy market, with its new Energy Compare and Save service, targeting the 11.7m households who have never switched energy suppliers to help them find a better deal.
Over the last six months the supermarket has also been developing a series of financial products in preparation for the official launch of Asda Money, including travel money, breakdown cover, travel insurance, car insurance, and home insurance with emergency cover.
Kevin Mountford, head of banking at MoneySupermarket said: “The launch follows hot on the heels of Marks and Spencer recently announcing it will be offering an in-store banking service from this summer, backed by HSBC, indicating a wider move by the retail sector to enter the banking arena.”
“If you are using the Asda Credit Card to take advantage of the cashback, make sure you repay your balance in full every month, otherwise the interest charged will outweigh the money earned.”