For the past four months, the retail sector has been in a state of freefall, relying on furlough and government bail outs to keep afloat. The pandemic has decimated retailers to the point where banks are no longer able to support. Never before have we seen the High Street in such an unstable position.
New fintech solution HyperJar is stepping in, replacing banks, to help resurrect the fast-deteriorating British High Street. Using the concept of 'Pay Now, Buy Later', it is harnessing the consumer’s power of intent to provide retailers with valuable data on where we are going to spend our money. Users can prepay their favourite retailers and be rewarded for doing so with a growth rate averaging 4.8%.
HyperJar has signed a number of big-name retailers for the test phase, including Shell, Virgin Wines, Bloom & Wild and Dyson. For the retailers, the benefit of signing up with HyperJar means that they are connected to the consumer at the “point of intent”. This means retailers can gain wonderful, sticky, transactional loyalty which translates to more share of wallet, bigger ATV and greater shopping frequency.
One of the lead partners has seen average transaction size leap to 30% above corporate average by the third spend cycle. If customers have pre-committed funds with a retailer in their account - linked to their payment card already, with their own ledger, and a GDPR-permissioned communications channel sending rewards, offers and news – customers are much more likely to default to that brand when shopping in its category. Intent data also means retailers gain incredibly valuable forward looking data - and all of this with a very high value customer type: a digitally literate, forward thinking saver.
Tricia Beaumont, Head of Communications at HyperJar, offers an insight into the benefits of 'money with intent' and how HyperJar rewards financial planning.
"Many of us have untapped value inside our brains: knowledge of where we are going to shop in the future. This ‘intent data’ can be monetised – HyperJar users can prepay for future spending with their favourite retailers or service providers.
In return for this commitment, users will be rewarded with a growth rate – the current average is 4.8%. This is akin to interest, but can’t be withdrawn as cash – it becomes effectively ‘branded currency’. The customer’s spending power is growing with time, enjoying dynamic accrual, and the retailer has future spend locked in."