Digital Bank Monzo has launched a new cashback feature to help customers earn some money back on purchases ahead of the festive season.

The new feature allows customers to typically earn between two percent and 10 percent on purchases from everyday merchants, including ASDA, Boots and Deliveroo.

Depending on the retailer, customers may be able to earn even more. For example, at the time of writing, the digital bank is offering 35 percent cashback on the Now Broadband service when £10 or more is spent online.

It comes as new research shows that a quarter of customers said that even a small amount of cashback would make a meaningful difference to them in the current economic climate.

Kunal Malani, general manager at Monzo, commented, “We know that in the current climate, more and more people are looking to money-saving solutions such as cashback, as a way to make their hard-earned cash go further.

“But it’s difficult to find a model that doesn’t have a complicated redemption process or one that offers cashback on brands people truly love.

“Our cashback offering plugs this gap in the market, giving customers real-time visibility on their rewards, with access to some of the nation’s most-loved merchants in food, retail, transport and entertainment.”

Mr Malani added: “We look forward to helping customers earn cashback, on their everyday spend, with ease.”

The easy-to-use functionality gives customers instant cashback notifications after purchases, so they will be able to see their upcoming cashback accumulate in real-time.

Shoppers will also be alerted to new offers from merchants that are relevant to them, based on their spending habits, with offers updated monthly.

The full list of merchants currently available on Monzo’s in-app Cashback include:

• ASDA
• Boots
• Currys
• Deliveroo
• Disney+
• eBay
• Foot Locker
• Franco Manca
• Gousto
• Honest Burger
• H&M
• Krispy Kreme
• Leon
• National Express
• LNER
• NOW Broadband
• Virgin Media
• Yo! Sushi.

To start using Monzo cashback, customers can follow these steps:

• Activate the feature in-app
• Use their Monzo card to shop in-store or online at selected retailers, as they always would
• Earn cashback from their favourite shops.