Tesco Bank introduces new way to pay which is a first for UK shoppers

  • Tesco Clubcard Pay+ enables shoppers to pay, save and pick up extra Tesco Clubcard points
  • Customers can collect Clubcard points on almost all purchases in and outside of Tesco
  • Transactions can be rounded up so shoppers can save when they shop
  • For the first 3 months after opening an account, shoppers can collect double Clubcard points in Tesco with Tesco Clubcard Pay+
  • In a phased launch of the product, over 21,000 accounts have been opened since March 2021, with more than £7 million of transactions made
  • Phase one of the launch of Tesco Clubcard Pay+ will now continue with increased capacity ahead of a full launch in early 2022

Tesco Bank has today shared an update on Tesco Clubcard Pay+, a new way for shoppers to pay, save and pick up Clubcard points, pretty much every time they spend.  Phase one of the launch of Tesco Clubcard Pay+ began in March 2021 with a limited number of customers and Tesco colleagues.

An innovative first for the UK market, Tesco Clubcard Pay+ is a smarter way to shop which is powered by Tesco Bank. Shoppers can add money and ringfence their grocery spend from any UK bank account into their Tesco Clubcard Pay+ account, using the free Tesco Bank mobile banking app. Tesco Clubcard Pay+ also gives shoppers the power to save while they shop by rounding up their purchases to the nearest pound, saving the difference into a Round Up account.

More than 21,000 accounts have been opened by shoppers, and over £7 million has been spent using Clubcard Pay+ at Tesco and other retailers. In addition, customers have so far collectively saved over £150,000 into their Round Up savings accounts. Tesco Clubcard Pay+ has been used nationwide, with shoppers using it to pay for their groceries in Tesco stores from Lerwick to Penzance. 

Phase one of the launch will now continue, with capacity created for an increase in customer numbers.  This will also inform further developments and additional features for Tesco Clubcard Pay+. This precedes a full launch in early 2022 when 20 million Clubcard members will be able to apply online for Tesco Clubcard Pay+.  Applications can be made online and should just take a few minutes - Clubcard Pay+ (tesco.com). 

Alessandra Bellini, Chief Customer Officer, Tesco, said: “Tesco Clubcard Pay+ has been developed by Tesco Bank to provide a new method of payment for shoppers that delivers all the value of Clubcard membership and a range of additional features.  We’re very encouraged to see shoppers regularly topping up their Tesco Clubcard Pay+ account to take control of their groceries budget, and to start saving.”

Gerry Mallon, Chief Executive, Tesco Bank, added: “Tesco Clubcard Pay+ is a smarter way to shop and a clear demonstration of Tesco Bank’s strategy to focus on products which closely align to the needs of Tesco shoppers.  Tesco Clubcard Pay+ has been designed to help customers feel more in control of their money.  The innovative features will help shoppers pick up extra Clubcard Points and, at the same time, give them the confidence to start saving.”

Ends

Notes to editors:

  1. The combination of features offered by Tesco Clubcard Pay+ is unique in UK retail and banking. These include:
    • Pay – Tesco Clubcard Pay+ comes with a debit card which customers can use anywhere they would normally shop using a debit card. Shoppers can add money to their Tesco Clubcard Pay+ account by simply linking any UK bank account to it using the Tesco Bank mobile banking app.
    • Save – Payments made using Tesco Clubcard Pay+ can automatically be rounded up to the nearest pound. So ‘spare change’ goes into a Tesco Bank savings account, which customers can add to from other accounts, and is accessible via the Tesco Bank mobile banking app. This can help customers who might find it difficult to start saving.
    • Rewards – With Tesco Clubcard Pay+ shoppers can pick up Clubcard points both in and outside Tesco. And, for the first 3 months after opening an account, shoppers can collect double Clubcard points in Tesco with Clubcard Pay+. That’s an extra 1 Clubcard point for every £1 spent.  Terms and conditions below.
    • Shop – The Tesco Bank mobile banking app is also connected to the Tesco Grocery & Clubcard App, where shoppers can instantly take advantage of offers in store and online. Using the mobile banking app, Tesco Clubcard Pay+ account holders can ringfence their grocery spend into their Clubcard Pay+ account, access their balance and identify opportunities to save money in Tesco stores with Clubcard prices, putting more pounds in their pockets.
  2. Tesco Clubcard Pay+ account holders will receive a debit card which will also act as their Clubcard, replacing their current Clubcard. Tesco Clubcard Pay+ uses the Tesco Bank mobile banking app to deliver the latest security measures and technology to give customers confidence and the highest levels of protection from fraud.
  3. Customers also have the power to pick up Clubcard points outside Tesco. Collected points can be spent in Tesco stores and online to help customers save money on their grocery bill, or customers can get three times the value with Clubcard Reward Partners, with over 200 partners including many restaurants, shops and family days out.
  4. Tesco Clubcard Pay+ is provided by Tesco Bank and is available to Tesco Clubcard members who are resident in the UK and aged 18 or over. The account can be applied for online and should only take a few minutes, with no impact on a customer’s credit rating. Accounts are subject to status.​
  5. Clubcard Points Terms & Conditions: The Tesco Clubcard Pay+ debit card is also a Tesco Clubcard, so shoppers will collect the normal 1 Clubcard point for every £1 spent in Tesco (in store and online) and also 1 Clubcard point for every £8 spent outside Tesco.
  6. 3 month offer: For the first 3 months (100 days to be exact) after an account is opened shoppers will collect 2 Clubcard points for every £1 spent using the Tesco Clubcard Pay+ debit card on qualifying products in Tesco and on Tesco Fuel (excludes Esso). That’s 1 extra Clubcard point for every £1 spent. After 100 days, they will go back to the standard Clubcard points collection rate for using Clubcard Pay in Tesco and on Tesco Fuel (1 Clubcard point for every £1 spent).

    Clubcard points are calculated on each purchase transaction and the standard collection rate is subject to change. Exclusions apply and there are some products at Tesco points can’t be collected on.  See the Tesco Clubcard website for details.

    The Tesco Clubcard Scheme is administered by Tesco Stores Limited, Tesco House, Shire Park, Kestrel Way, Welwyn Garden City, AL7 1GA, who are responsible for fulfilling Clubcard points.
  7. Round Up: The Round Up functionality can be switched on and off within the Mobile Banking App. Round Up transactions won’t occur in every instance, some exclusions apply.

You may also like