Cashrewards is the Aussie company that lets members receive cash back on every purchase from partnering retailers. Win!
Background: ANZ is one of Australia's biggest banks, and Cashrewards is an Aussie company that launched back in 2014. It lets members receive cash back on every purchase from partnering retailers. Win!
What happened: In the last financial year, Cash rewards drove around 3.5 million transactions to retailers. And while that sounds juicy, in reality, Cashrewards' profit margins ain't that flash, 'cos most of it goes to members.
What else: Now, ANZ is offering $100 million to buy Cashrewards, which is actually 35% lower than the company's valuation at its initial public offering last year.
💡ANZ's big, fat investment into the cashback game, suggests a big, fat bet against the buy now, pay later industry. And ANZ have been pretty clear about this.
💡Ya see, retailers pay cashback companies a referral fee for helping them acquire a customer. Retailers also pay buy now, pay later companies a 'merchant fee' for helping acquire a customer. So it becomes very expensive for retailers to pay both fees on the same transaction.
💡So now, Cashrewards is not only competing against its competitors in the Cashback space - but also BNPL providers. Which may have become all too much for Cashrewards.
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