Wednesday 13 October 2021 6:16 pm

Exclusive: UK fintech Mode to offer millions of THG customers cashback in crypto

Mode, an FCA registered open banking platform and Bitcoin wallet, is partnering with THG – a digital consumer brands company representing stores used by 31m customers – to provide crypto cashback rewards to its UK users, its CEO told City A.M. today.

When customers make purchases at THG stores using Mode’s QR code based payments system they will be rewarded instantly with five per cent cashback in Bitcoin on the company’s flagship mobile app, with new users receiving ten per cent.

Next 100m crypto users

Ryan Moore, CEO of Mode, said “this marks a step forward in delivering on our aim to make Bitcoin accessible to all and put it in the hands of as many people as possible.”

“That’s what we focus in on,” Moore told City A.M., how to “bring the next 100m customers into the ecosystem of bitcoin and cryptocurrency.”

While the loyalty scheme will initially be rolled out in only stores owned by THG’s 31 brand partners, Moore revealed that discussion are ongoing with further online stores as well as brick and mortar retailers.

“The power of a QR based system is really coming into its own” Moore added, explaining open banking has “huge growth potential” with Mode’s infrastructure offering merchants lower fees for payments than Visa or Mastercard.

John Gallemore, CEO of THG Ingenuity, commented on the partnership saying “we are constantly innovating and providing new solutions to THG brands and THG Ingenuity partners. Mode’s payments solution will provide our customers with additional payment opportunities to suit their needs and is another step in the platform’s evolution.”

Losses

The partnership comes as both Mode and THG battle losses. Mode, which has over 50,000 users, reported an operating loss of £3.8m in 2020 with Moore commenting that open banking adoption rates have remained low in the UK so far despite the benefits it offers to users.

Formerly known as The Hut Group, THG has been mired in recent controversy after critics questioned the company’s recent $4.5bn valuation. Yesterday, the company’s share price plummeted by as much as 40 per cent after an investor meeting sparked a mass sell off.

The company has experienced a reversal of fortune since its record breaking IPO in 2020 which raised £1.88bn – the strongest debut performance for a company since 2015.

Read more: THG targets separate IPO for beauty business

Share