As the cryptocurrency industry enters the mainstream adoption stage, major UK retailers have begun making plans on how to allow their customers to earn bitcoin passively via a new cashback solution.
In a recent report by City AM, over 40 UK retail giants will offer customers cashback in bitcoin from next year through a new loyalty rewards programme that will be powered by the London-listed fintech firm, Mode.
UK customers can earn crypto rewards of between 5% to 10% when they make online purchases at any of the participating retailers, and their rewards will be sent to them via their Mode wallet.
Speaking on the new development, Mode's CEO Ryan Moore said: 'This marks a major step in making the asset class more accessible to consumers of all demographics, ultimately bringing Bitcoin into the hands of millions of customers across the UK.
A few hours before the announcement, Mode's share price surged by as much as 15%, which is reportedly the most it has witnessed in more than five months.
Mode Pushes to Make Crypto More Accessible
Moore noted that the crypto rewards programme is geared toward making crypto more accessible by providing UK residents with a low-risk entry point to crypto and allowing them to earn bitcoin passively without going through the hassle of investing in crypto directly.
Customers can either choose to store their bitcoin rewards or trade them on Mode's exchange platform.
The new scheme comes amid surging interest in bitcoin and other crypto-related products. A few months ago, a survey conducted by Chainalysis revealed that the UK is leading crypto adoption with over £125 billion in value received.
Not only will Mode offer cashback rewards to customers, but its open banking payments platform also provides instant settlements at extremely low transaction fees.
Moore concluded, "People are looking for new ways to grow their wealth and take control of their finances. We believe Bitcoin is the best asset to do that with."
The crypto cashback program is expected to be launched by 2022, with funding coming from Mode and its partners.
Partners Deny Involvement in Mode's Cashback Scheme
Speaking of partners, Homebase, Ocado Group Plc, and Boots had earlier been named as partners. However, in a surprising turn of events, Boots and Ocado have since denied their involvement with the scheme.
A Boots representative had sent an email to Molly Spies, the head of marketing at CoinCorner, a UK exchange and wallet provider that had also lost its partnership with Boots last year due to a similar cashback scheme.
In the email, the UK health and beauty retailer said: "Boots do not currently want to work with Bitcoin publishers… if anything changes in the future we will re-invite you to the programme but now unfortunately we have to suspend."