Tesco wants shoppers to pay for their shopping without cash or card

Tesco said millions of shoppers will be able to pay for their purchases without cash or a card.

The supermarket giant has developed a new payment method that over 20 million shoppers can use to pay. The Manchester Evening News reports.

All Clubcard members can now apply online for the Tesco Clubcard Pay+, a type of prepaid debit card from Tesco Bank.

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Shoppers can fund their Tesco Clubcard Pay+ account from any UK bank account using the Tesco Bank mobile banking app and protect their grocery bills.

If you wish, you can also use the prepaid card in any shop or for online payments.

However, you can only spend cash that you’ve actively loaded onto the card – you can’t spend money directly from a checking account.

Tesco Clubcard Pay+ also allows shoppers to save when they shop by rounding up their purchases to the nearest pound and storing the difference in a rounding up account.

Almost 45,000 accounts have been opened by shoppers since the pilot launched for Tesco employees in March 2021.

The pilot program has seen over £24m spent on 1.2m Clubcard Pay+ transactions at Tesco and other retailers.

Tesco Clubcard Pay+ has also been used to collect over 5.25 million Clubcard points nationwide.

Gerry Mallon, CEO of Tesco Bank, said: “We are very encouraged to see Tesco Clubcard Pay+ helping to give shoppers the confidence to start saving whilst managing their budget and earning extra Clubcard points where whenever they shop.”

How does Tesco Clubcard Pay+ work?

Tesco Clubcard Pay+ account holders receive a debit card that also acts as their club card, replacing their current club card.

The new scheme is being provided by Tesco Bank and is available to Tesco Clubcard members who are UK residents and aged 18 or over.

The account can be applied for online and should only take a few minutes without affecting the customer’s creditworthiness.

How good is the Round Up savings option?

Tesco customers have so far saved more than £213,000 on their Round Up savings accounts.

These accounts earn 0.25% interest.

However, the Tesco Round Up offer has the advantage of being easy to use and helping savers save cash automatically.

The Shawbrook deal also needs £1,000 to open. The next best rate for easy access accounts is 0.65% from Paragon and requires only £1.

Tesco shoppers will be all too familiar with the supermarket’s Clubcard loyalty scheme, which gives you points as you shop.

Shoppers typically earn one Clubcard point for every £1 spent on groceries in Tesco, or one point for every £2 spent on fuel.

You can also earn points through Tesco Bank and Tesco Mobile.

In turn, each point is worth 1p – so for every 500 points earned, you’ll accumulate £5 to spend.

But if you exchange your points to use with a rewards partner, you could potentially do so triple their value.

Money bloggers Ricky and Naomi explained: “Every 50p raised in Tesco Clubcard vouchers can be exchanged for up to £1.50 to spend on day trips and attractions across the UK.

“That means you get free or discounted entry to attractions like Shrek’s Adventure! London, Blackpool Pleasure Beach and Warwick Castle.”

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