Raiz Rewards continues to grow as Aussies look to instant cash backs from online purchases
Revenue from online shopping continues to rise as more digital buyers turn to online purchases. This growth is due to several factors, such as changed habits resulting from the pandemic, convenience, new online stores being established, an ever-expanding range of available products and competitive prices.
Equally attractive are incentive programs like Raiz Rewards, which allow people to invest as they shop.
With 320 retail partners now in the Raiz Rewards program, when a Raiz customer purchases from one of those partners using the link in the app, that retailer automatically invests a cash reward into the customer’s Raiz Invest Super account or Raiz Account. This reward is either a percentage of the purchase price or a fixed sum.
In the quarter ending March 2021, more than $4.737 million worth of purchases were made in Raiz Rewards. In the same quarter, rewards invested onto the Raiz platform was more than $263,000, which is more than double the same quarter last year.
“We saw an acceleration in Raiz Rewards purchases, in part driven by the pandemic, when shoppers had to purchase online due to lock down rules and physical store closures,” said Brendan Malone, CEO, Raiz Invest Australia.
“Despite shoppers returning to physical stores, it hasn’t impacted the popularity of online purchases, as evident through our Raiz Rewards data. And with Mother’s Day this Sunday, we expect to see another surge in Raiz Rewards purchases, as customers splash out on mums and in return, also get a cash benefit back into their accounts.”
Raiz Rewards is also ideal for long term investments, where every dollar counts, with cash backs from purchases able to be invested directly into Raiz Super accounts.
“With financial literacy on the rise, especially in younger generations, the option of getting more money earlier into superannuation is attractive to many of our Raiz customers, who want to invest now to ensure the lifestyle desired in retirement,” added Malone. “Like round ups, it’s incredibly easy to set up Raiz Rewards to put the cash into your super account and then forget about it.
“We have also enabled the onboarding of self-managed super funds to Raiz to attract higher balance customers too, which can also use Raiz Rewards.”
Quarter One and April Metrics
Raiz achieved record results for active customers and funds under management (FUM) in the first quarter of this year to 31 March 2021. Active customers increased by 22.1% to 419,552 and FUM in Australia rose 14.6% to $694.3 million. Superannuation FUM also grew by 14.2% to $92.5 million in the quarter.
Australian FUM growth continued in April, accelerating by 6.2% to $737.56 million, which included a 5.4% growth in superannuation FUM to $97.48 million.
“Raiz is well on track to achieving our goal of $1 billion in FUM by the end of this calendar year,” said Malone. “The continued growth in customer numbers and FUM achieved in Australia demonstrates the unique nature of the Raiz platform, such as Raiz Rewards, and the loyal customers we attract.”