Lloyds Bank has introduced a new cashback trial that gives customers 10 per cent back when they shop at participating independent businesses in two parts of England. The trial is running in Exeter and Yorkshire, and the cashback is paid directly into customers' accounts. If successful, the scheme could be extended to the bank's 28 million customers across the UK.
Trial details and how it works
The trial applies at independent businesses that bank with Lloyds. Eligible customers who spend with these businesses will receive 10 per cent cashback automatically. The bank, which has branches in Birmingham, says the initiative is designed to reward local spending and help retailers reach potential customers.
Lloyds is one of the first UK banks to use its rewards programme to connect customers directly with businesses that bank with them. The bank says it has the "ambition to reach more UK communities" after the initial trial in the south of England and Yorkshire.
Businesses participating in the pilot
Ten businesses have confirmed they are taking part in the pilot. In York, the participating businesses are Dusk Bar, Durham Ox, and Chris Sellers Tyres. In Exeter, the businesses are The Holt, Oriel's, The Milky Way Adventure Park, The Marine in Dawlish, Bicton Botanical Gardens, World of Country Life, and Kit Heath.
Ruchir Rodrigues, Managing Director of Business & Innovation Banking at Lloyds, said: "Independent businesses are at the heart of thriving local economies. The trial gives Lloyds business customers another way to raise their visibility and connect with Lloyds consumers through their Lloyds mobile banking app, while helping us understand how we can support local businesses to grow."
Reactions from participating businesses
The Milky Way Adventure Park in Exeter, a Lloyds business customer, said in a statement: "We're thrilled to be part of the launch of Lloyds' new Local Rewards scheme. As an award-winning, family-run business, we're passionate about supporting our local community and love the idea of rewarding people for spending with local businesses. It's a fantastic initiative, and we're looking forward to welcoming both new and returning visitors to The Milky Way and helping even more families enjoy a great day out together."
Paul Wilkinson, Rewards and Loyalty Director at Lloyds, added: "We're always looking for new ways to provide value for our customers while supporting the communities we serve. By offering 10% cashback at participating independent businesses, we can help our customers' money go a little further while encouraging them to discover more of what their local area has to offer. This trial brings together our personal and business customers in a way that can benefit both, helping independent businesses connect with potential customers and rewarding people for shopping locally."
Future expansion
Rodrigues said the bank is "excited to learn from the launch in York and Exeter" as it explores whether the offer could support more communities across the UK. The trial's outcome will determine whether the 10 per cent cashback scheme is rolled out more widely, potentially reaching Lloyds' 28 million customer base.
