Asda shoppers can earn 2% cashback on food and fuel
The supermarket has launched the Asda Money Credit Card in partnership with fintech Jaja Finance.
Shoppers can earn 1% cashback for every £1 spent with Asda in any of its 640 stores, or online. It includes spends at the supermarket, its fuel forecourts, George clothing, Asda services such as Asda Tyres and Opticians, as well as at its pharmacies. Asda confirms the cashback can be earned on baby formula and tobacco products. But it excludes Asda travel money.
And as part of its launch offer, customers applying for the Asda Money Credit Card before Sunday 28 August will earn a higher rate of 2% cashback on their Asda transactions for the first 60 days from account opening.
Meanwhile, the fee-free Visa credit card (22.9% representative APR) also allows shoppers to earn 0.3% cashback for all other purchases outside of the supermarket.
Asda launched its loyalty programme called ‘Asda Rewards’ following a successful trial last year. It allows customers to earn pounds rather than points by shopping at the retailer. Once the Asda Rewards app has been downloaded, shoppers earn by scanning items, getting 10% back when buying star products, and by completing ‘missions’ over a number of shops.
The money can be spent in Asda or it can be saved up in their ‘Cashpot’ to save for bigger shops, such as back to school or Christmas.
And by launching the new credit card, customers can earn via both schemes when they link the plastic to the rewards scheme.
The money can be spent by changing the ‘Cashpot’ into a voucher in the app which can then be scanned at an in-store checkout.
Asda pounds which have not been added to a ‘Cashpot’ will expire if the credit card’s not been used for 12 months.
Currently, the cashback can only be redeemed at 149 stores offering ‘Asda Rewards’, but it confirmed it is being rolled out to 300 stores from Thursday – nearly half of its store numbers, before being rolled out further later this year.
The cashback can’t currently be redeemed online though it is being trialled in Wales and is expected to be rolled out wider later this year.
How good is this offering?
It’s a “decent offer”, according to data site Moneyfacts. It said that while it’s clearly aimed at Asda shoppers, the 0.3% cashback on other spends is competitive against other fee-free alternatives.
However, the APR is not the lowest, “though it’s not too different from other cashback cards”, Rachel Springall, finance expert at the site said.
She added: “Loyal Asda shoppers may be pleased to see this new credit card designed to reward them with cashback. The cashback offer doesn’t appear to be capped in anyway, and whilst the 2% introductory offer will last for 60 days, the resulting 1% is still very attractive in the current market – but both these cashback amounts will turn into Asda pounds which can only be spent with the brand.
“It’s good to see there is a variety of goods shoppers can buy to earn cashback on, including Asda fuel, but shoppers must remember to link their Asda Rewards app to their credit card once they receive their card.
“However, those who use the card for spending elsewhere will receive 0.3%, and for a fee-free credit card, it’s a competitive standard return compared to some of the other alternatives in the cashback card arena. Overall, it’s a decent offer for those who have big shops or smaller more frequent visits to Asda. As with any card, shoppers must ensure they clear their balance before interest applies.”
According to Moneyfacts, the American Express Platinum Cashback Credit Card offers an introductory 5% cashback for three months on spends between £1 – £2,500 per year, then 0.75% on spends between £1 – £10,000 per year and 1.25% on spends over £10,001 per year. It has a £25 a year fee.
The Santander All in One Credit Card Mastercard pays a standard 0.50% on spends over £1 per month.
Katie Walley, senior director Asda Money & Mobile, said: “We’re always looking to make shopping that little bit more rewarding for our customers, which is why we are launching a credit card in conjunction with our new digital loyalty app – Asda Rewards. By using the new Asda Money Credit Card customers will be able to earn Asda Pounds every time they shop by getting 1% back on all Asda purchases including fuel to later spend in store or online.”