ANZ promotes buy now, save now through Cashrewards partnership

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The buy now, pay later (BNPL) sector has revolutionized the global retail sector. With millions of consumers and hundreds of thousands of merchants globally joining the BNPL bandwagon, the flexible payment option has helped consumers manage their finances in times of financial uncertainty caused by the global pandemic. Notably, higher purchasing power and easier access to credit have helped BNPL providers to lure customers in utilizing the payment method.

The exponential rise in the adoption of BNPL by consumers has even attracted legacy payment providers such as the Commonwealth Bank of Australia (CBA) to launch a deferred payment service for its retail partners. However, Australia and New Zealand Banking Group (ANZ), one of the four largest banks in Australia, is not particularly keen on the growing craze of BNPL flexible payment solutions. According to ANZ, a massive disruption looms in banking, and the likes of Afterpay and Zip have a place in the market, but there is a role for credit cards in the future.

ANZ promoting buy now, save now instead of buy now, pay later

In July 2021, ANZ entered into a strategic partnership with ASX-listed Cashrewards to boost cashback payments to customers. Under the strategic collaboration, ANZ will enable its 4.7 million customers to earn cashback payments while shopping at more than 1,700 retail partners, including Adidas, Apple, The Iconic, and Dan Murphy's.

Cashrewards users earn a percentage of what they spend when shopping. Users of the service can then withdraw the percentage amount as cash directly to their bank account. Through the strategic collaboration between ANZ and Cashrewards, eligible ANZ customers are expected to receive higher cashback offers, access to exclusive retail partnerships, and faster payouts.

Dubbed as CashrewardsMax, the customer loyalty program launched by ANZ and Cashrewards is about targeting savers over spenders as the bank pursues higher-value customers in a low-margin environment. Notably, ANZ is promoting its partnership with Cashrewards as a buy now, save now scheme, which contrasts with its rivals, Afterpay or Zip, who are chasing the success of BNPL.

The strategic partnership with Cashrewards comes when interest rates are their historic lows, and customers are looking for new ways to boost their savings. Therefore, this partnership with Cashrewards responds to the growing demand by rewarding customers for their spending behavior, meaning they can buy now, save now.

Notably, ANZ also bought a 19% stake in Cashrewards in December 2020. Cashrewards has a million users, giving them more than 5% of the total market in Australia, making it the most advanced rewards program in the country.