How ShopBack and its rivals are shaking up retail What’s all the hype about?

As an avid shopper, I’ve always been on the lookout for ways to make my purchases go further, especially given the tougher economic climate of the past year. Like many, I’ve had to rein in my spending and be more prudent with my choices. When ShopBack launched in New Zealand, it kept popping up on my Instagram and TikTok feeds, so I decided to give it a try. I signed up early, added the widget to my laptop, and installed the app on my phone.

Since July 9, 2024, I’ve earned over $141.56 in cashback — though I’ve noticed some of those rewards only get released months after the purchase (which has been a bit confusing). I have mixed feelings about my experience. There’s the post-purchase dissonance when I forget to use ShopBack and go straight to a retailer's website, elation when I remember and get cashback for doing what I usually do, and frustration when my habits change but the service falls short — looking at you, Chemist Warehouse New Zealand , though props for now offering same-day delivery through Uber. It made me wonder if shifting my behaviour and spending more online was worth it, especially considering the higher service costs retailers face with online orders. Or am I just an outlier? So, I decided to dig deeper and explore whether cashback is a key component in modern retail strategy.

How ShopBack Works

At its core, ShopBack rewards users with cashback for shopping through its platform, whether online or in-store (depending on the market – instore not yet in NZ). ShopBack receives a commission from partnered retailers for driving traffic to their stores and passes part of that commission back to the user. Consumers can browse deals, click through to retailers, and earn cashback, which is credited to their accounts once purchases are validated. The cashback can then be withdrawn once a minimum balance is reached.

ShopBack’s platform is available via a mobile app or browser extension, making it easy for users to track cashback offers. With the app, users can also receive notifications about additional deals, special promotions, and ShopBack-exclusive offers.

ShopBack in Australia vs. New Zealand

While both Australia and New Zealand share similar core ShopBack functionalities, there are some key differences between the two markets:

In Australia, ShopBack provides both online and in-store cashback options. The introduction of ShopBack Pay has been a game-changer, allowing consumers to earn cashback at over 1,500 venues, including restaurants and cafes. In contrast, New Zealand currently offers cashback for online shopping only, but ShopBack is rapidly expanding its partnerships, with nearly 200 retailers onboard since its launch.

Retail Participants by Category

Below is a breakdown of key retail categories and participating retailers for Australia and New Zealand - note this isn’t all participants but you can find them here for NZ and here for Australia. What’s worth noting is that these are significant brands and retailers.

As the table shows, Australia offers a wider range of in-store cashback opportunities, particularly in categories like alcohol and supermarkets. New Zealand, while still focused on online cashback, has already attracted major retailers like New World and Chemist Warehouse, providing consumers with valuable savings on everyday purchases.

Key Competitors

ShopBack isn’t without competition, especially in the cashback and coupon industry. In both Australia and New Zealand, the platform faces notable challengers.

• Cashrewards (Australia): Australia's largest cashback platform with online and in-store options. Strong focus on in-store cashback via linked credit/debit cards and price comparison tools (following the acquisition of Little Birdie). Notable retailers: Woolworths, Myer, Amazon. Launch Date: Australia: 2014.
• Yello (Australia): Rebranded from Cheddar by Commonwealth Bank, Yello focuses on cashback and financial tools, targeting younger consumers. Integrates social shopping, spending tracking, and financial management. Notable retailers: The Iconic, Nike, Adore Beauty. Launch Date: Australia: 2023 (Rebranded from Cheddar).
• Kiwiwallet (New Zealand): NZ-based cashback site tailored to Kiwi consumers with local partnerships. Notable retailers: AliExpress, Booking.com. Launch Date: New Zealand: 2018.
• Cashback.co.nz (New Zealand): NZ-based cashback platform focusing on local and global brands. Notable retailers: AliExpress, iHerb, Booking.com. Launch Date: New Zealand: 2020.
• Doshback (New Zealand): Fee-free debit card cashback platform offering 1% cashback on all spending. Exclusive to Dosh mobile wallet users. Launch Date: New Zealand: 2023.
• ShopRewards (New Zealand): NZ-based cashback platform that allows users to earn cashback on online purchases from various retailers.
• Cashpoints (New Zealand): The newest player which only launched 1 week ago (mid Oct 2024) - so for the purposes of this we won't include them but simply watch this exciting development.

In Australia, Cashrewards remains the strongest competitor, particularly due to its well-established in-store cashback options. Yello provides a different value proposition, targeting younger users with social elements and seamless integration, via CommBank.

In New Zealand, KiwiWallet offers a similar cashback services, but ShopBack has already set itself apart by partnering with large global retailers, providing users with a wider selection of shopping options.

The Growing Success of ShopBack

Globally, ShopBack continues to expand its presence, with over 45 million users across 12 markets. Since its inception, the platform has paid out over US$475 million in cashback rewards. In both Australia and New Zealand, ShopBack is gaining momentum due to its diverse range of retail partnerships, attractive cashback offers, and ease of use.

In Australia, ShopBack has over 1 million active users, reflecting its success in securing key partnerships and providing both in-store and online cashback. The expansion into in-store cashback has been a significant driver of growth, attracting users who appreciate the convenience of earning cashback in their everyday shopping experiences. We should expect this to roll-out into NZ over time.

A wider international content and bigger play

In some markets, ShopBack does allow users to both earn and spend cashback directly within the app. In Singapore, users can accumulate cashback through purchases and then either withdraw it to their bank accounts or spend it using ShopBack Pay. This feature allows customers to pay at participating stores using the ShopBack app, while also stacking rewards from their preferred payment methods such as credit cards or digital wallets. This means you can spend your accumulated cashback directly in-store or online without having to withdraw it first.

Additionally, the ShopBack PayLater feature in some markets offers the option to spread out payments for larger purchases, giving users more flexibility in managing their finances while still earning cashback. This integration is beneficial for both users and retailers, as it encourages repeat business by offering more ways to utilize rewards. However, these advanced payment features are still being rolled out gradually, and not all markets, such as New Zealand, have access to the full suite yet. However, you can start to see the power of the ability to spend directly within the app.

The increasing range of cashback and payment features shows how ShopBack is positioning itself as more than just a cashback platform—it's evolving into a broader shopping and payment ecosystem.

Is it all worth the hype?

ShopBack has established itself as a leader in the cashback space, offering consumers in Australia and New Zealand the opportunity to save on a wide range of purchases.

While Australia enjoys a more mature o ffering with both online and in-store cashback, New Zealand’s growing market is quickly catching up.

?? I do ponder, with the rapid rise of cashback programmes in the market, it seems to mirror the explosion of Buy Now, Pay Later (BNPL) schemes, where retailers once felt compelled to participate in all of them just to stay competitive. Much like the BNPL landscape, it’s likely that we’ll see a similar "survival of the fittest" scenario in the cashback space. While there’s an initial rush to join these platforms, only the strongest or most integrated solutions may endure.

??The big question for retailers is whether these cashback schemes will genuinely drive new customers and boost sales or simply add another layer of cost. For some retailers, the increase in spend and frequency may justify the commissions paid, but there’s also the risk that consumers will expect deals and discounts continuously, eroding full-price sales. In a crowded marketplace, retailers may find themselves participating in multiple cashback programmes, leading to higher costs—ultimately pushing them to evaluate whether the potential loyalty and new customer acquisition outweighs the financial burden.

As the cashback landscape continues to evolve, it’s clear that platforms like ShopBack have changed the way consumers and retailers interact, driving value through savings and potential customer loyalty. The rapid rise of these schemes across markets, underscores a broader shift towards value-based shopping behaviours. Whether this trend represents a true shift in consumer behaviour or simply a response to economic pressures remains to be seen.

For retailers, the decision to embrace cashback platforms will depend on their ability to balance customer acquisition costs with potential gains in spending frequency and basket size. Ultimately, the true impact of cashback programmes will be measured not just by immediate sales boosts, but by the sustained customer relationships they can foster. As the market matures, retailers will need to determine whether cashback is a necessary cost of staying competitive or a strategic tool to drive growth in an ever-evolving retail landscape.