1% cashback: Fintech Hay rewards users for small purchases

Despite being a popular incentive for cardholders in the United States, cashback has never really taken off in Australia, particularly not ongoing cashback offers which give customers the opportunity to earn money back over the long term.

Sydney-based Hay users are able to earn 1% cashback on all of their day-to-day purchases under $10 when they pay using either their Hay Visa prepaid card or with Google Pay or Apple Pay on their smartphone.

There’s no cap on the amount of cashback users can receive on purchases below $10, but there is one catch. In order to activate the offer users will first need to successfully refer a friend to Hay.

While 1% back - perhaps on a $4 coffee - may not seem a lot, Hay’s chief brand and marketing officer, Alex Lloyd says the idea is all about giving Hay’s users the chance to be rewarded over the long term.

“The TinyBig reward is only 1%, but by just using it for things you already purchase like bus or train trips, you can get a few dollars back a month when you combine all those small purchases,” he said.

“That’s almost a free coffee per month, every month, or half your music subscription cost for the year. It’s not a big bonus up front but it all adds up.”

According to Hay, around 40% of the total transactions made by its users are under that $10 figure, with the most common spending categories being eating out, groceries, shopping, transport and coffee.

The fintech also revealed that its top rewards receiver in August earned $3.86, which would come out to over $45 cashback a year if they were to maintain their spending pattern.

Though relatively rare, Hay aren’t alone in offering an ongoing cashback deal:

• HSBC’s Hay review for more information about their current products and app features, as well as some of the releases we can expect from the fintech in the near future.