The digital challenger – which last month completed its buy out of Harrods Bank – has launched its first product in the UK – a cashback credit card offering 0.5% on all purchases (on £1+ spends). It comes with no overseas transaction fees.

Users will receive Mastercard’s exchange rate when making purchases abroad and as the product is a credit card, purchases on goods or services over £100+ are protected under Section 75 rules.

The card has an APR of 18.9% and for cash withdrawals, users will be charged a fee of 2.5%, with a minimum charge of £2.50 in the UK while overseas, Tandem said there are no fees for withdrawing cash, though interest will be charged until the balance is paid off.

There’s a £12 fee if you make a late payment or if your payment fails. Customers can apply online and manage the account via the app, where they will see real-time updates of their transactions.

However, for cash withdrawals, it can take up to five days to see the interest details via the app.

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In order to be eligible, you need to earn a minimum of £13,000.

Sven Schindele, senior product manager at Tandem, said: “We took a close look at the lifestyle, values and spending behaviours of our customers and produced a card that helps you earn as you spend, spend abroad without worry, and borrow as it suits you. We hope our customers find the card a helpful companion in all situations in life at home and abroad.”

Andrew Hagger of Moneycomms, said this is a great all round card from Tandem which is likely to prove popular.

He said: “The 0.5% cashback rate is generous in its own right in today’s market, but combined with free usage abroad, it makes it a really attractive package.

“Other providers (most recently Monzo) have offered free transactions and cash withdrawals overseas in the past but ended up finding it too expensive so had to introduce ‘foreign transaction and ATM charges’ similar to most providers. So let’s hope this isn’t just another short-term promotion and that Tandem can disrupt the market over the longer-term.”