Tesco Bank are trialling a new prepaid debit card which will give shoppers double Clubcard points for three months.
The debit card will allow customers to claim extra point when doing their shopping as well as being rewarded for shopping at other shops, where they will receive one Clubcard point for every £8 spent.
The new Clubcard Pay debit card will work in a similar fashion to its reward scheme Clubcard, however there will be no overdraft and shoppers will be able to use it the same as they would a normal debit card.
Users will be able to withdraw cash from machines and use the card when at checkouts, all the while earning Clubcard points.
With Clubcard Pay, shoppers will be able to receive two Clubcard points for every £1 spent in Tesco and on Tesco Fuel.
READ MORE: Tesco’s Pay+ app surpasses £1 billion in transactions as contactless payment methods skyrocket
The debit card offers double points for customers when they first signup for three months after opening their accounts.
The new card enables customers to keep track of their spending through the Tesco Bank app while having the option to round up their spending to the next pound which is set aside in a savings pot for the future.
The set aside savings earn interest at a rate of 0.1 per cent but can be transferred to other accounts with high returns.
“This innovation by Tesco to grow its younger demographic customer base is a significant move for the industry and challenges the challenger banks, such as Starling and Monzo who offer similar products,” Marketing agency Tcc chief executive Simon Hay told Charged.
“Emotionally connecting with customers to create long lasting loyalty remains a constant challenge for every retailer.”
Currently, only 20,000 UK consumers are able to sign up for a debit card however the retailer plans to roll out the scheme the rest of the nation come Autumn.
Tesco’s Pay+ app which allows shoppers to pay with their phones and collect Clubcard points surpassed £1 billion in payments in January as mobile payments garnered popularity during the pandemic.
Pay+ is now understood to have 1.2 million registered users and is used to make a transaction every 1.4 seconds on average.