The Cashrewards Ltd (ASX: CRW) share price is soaring 17.2% to $1.09 this morning after the company announced a strategic partnership with one of Australia's leading banks.
This comes after shares in the cashback ecosystem surged an astonishing 29.17% to 93 cents yesterday, despite no news coming out of the company.
Cashrewards is Australia's number 1 cashback site, paying customers back a percentage of what they spend, with over 1,700 retailers on board.
Let's take a look at what's driving the Cashrewards share price today.
What did Cashrewards announce?
Cashrewards has entered into a strategic partnership with Australia and New Zealand Banking Group Ltd (ASX: ANZ) to create a new product, Cashrewards Max.
The announcement states that the product will include core Cashrewards features as well as enhanced cashback offers, faster cashback from certain merchants and "exclusive experiences".
Cashrewards Max is expected to launch in August 2021 with an initial agreement term of three years. However, Cashrewards views this as an opportunity which "creates a framework for further exciting product innovation in the coming years".
The launch will offer ANZ consumer debt and low-fee credit card customers who are new to Cashrewards, a chance to earn card-linked rewards for the first time. ANZ's premium credit card members will be entitled to Cashrewards Max alongside core features.
According to the announcement, Cashrewards and ANZ will jointly invest in a multi-million dollar marketing campaign to promote the new product.
What did management say?
Cashrewards CEO Bernard Wilson welcomed the news, saying:
This is a key milestone in our strategy. We expect Cashrewards Max™ to help cement Cashrewards as Australia's default cashback ecosystem and to accelerate our mission to grow the cashback category to match the size of similar international markets
ANZ Group Executive for Data and Automation Emma Gray also added:
In the current low interest-rate environment, our customers are looking for new ways to boost their savings. This partnership responds to that demand by rewarding customers for their current spending behaviour, meaning they can buy now, save now.
This partnership also opens the door for us to engage in more personalised conversations with our customers about how they can use their savings in a smart way, which could be saving for a home or business, or paying down debt.
The Cashrewards share price just surged 55% in two days
In an extraordinary display of strength, the Cashrewards share price rallied 55% from 72 cents closed on Wednesday to $1.115 at the time of writing.
Looking back, Cashrewards listed on the ASX on 2 December 2020, closing at $1.750. The Cashrewards share price briefly hit an all-time record low of 66 cents on 16 June, down 62% since its ASX debut.
