Westpac has followed ANZ into the cashback rewards market, with an investment in shopping and rewards business ShopBack Group.

Westpac announced yesterday that it has invested US$30 million in ShopBack, which was founded in 2014 and has operated in Australia since 2018. It has more than two million Australians registered to get cash rewards for shopping online at more than 3000 participating retailers.

Westpac debit and credit card customers will be able to access “exclusive” cashback offers via a dedicated Westpac hub in the ShopBack app and website.

Customers visit the ShopBack website or download the app, and add an eligible Westpac debit or credit card for purchases.

The rewards can be used when making purchases or transferred to the customer’s bank account.

ANZ acquired a similar business, Cashrewards, last year through its venture business 1835i. Cashrewards works with around 1900 merchant partners. 

Shoppers who use their Cashrewards account to make purchases with these merchants are eligible for cashback rewards, with an average reward of around 7 per cent.

Cashback rewards are credited to the customer’s Cashrewards account, where they can be retained. In the case of ANZ customers, they can be transferred into an ANZ or PayPal account.

Initially, ANZ launched an offer called Cashrewards Max, promising ANZ customers a program with higher cashback rates than the standard Cashrewards program. 

But Max didn’t last long. It was “retired” at the end of September and all Cashrewards Max accounts automatically became standard Cashrewards accounts.