Every time you shop, you make the most of it by looking at deals, sales, and cashback offers. But have you ever wondered how seamlessly your cashback is returned to you?
First off, what is cashback? For every purchase a customer makes with their card, the retailer has to pay a certain percentage back to the card company. The credit card company then passes some of this payment back to the customer as cashback. Debit card cashback is generally cashback paid directly from the bank to the customer.
Over the last 18 months, high-interest rates and a surge in the cost of living have drastically affected global consumer purchasing power. This has created an insatiable demand for one thing: cash. The Middle East is no different, and cashback programs are increasingly being seen as a new, more effective alternative to traditional reward points in shaping certain shopping behaviours. The global Cashback Apps market, valued at $3.37 billion in 2022, is predicted to almost double to $6.14 billion by 2031.
In such a highly competitive landscape, cashback services need to deliver something different to stand out. One company that has made its name in a short time is mimojo. The company has built up a considerable network of merchants, including restaurants, retailers, and beauty salons, tapping into a population of 3.66 million in Dubai alone. Founded in Dubai by former Entertainer executives Chris Shaw (CEO), Dan Lloyd (CFO), and David Ashford (CPO), mimojo, is rapidly expanding to districts around the emirate, aiming to become a regular part of consumers’ daily spending habits.
The model currently operates on a paid subscription basis. After an initial two-month free trial, consumers can continue with Dh10 a month, with up to 35% cashback on brands for all Visa and debit card holders.
In an exclusive interview with Finance Middle East, mimojo’s CEO Chris Shaw discussed the company’s tech, operations, and expansion plans.
“The landscape is hugely competitive, so to compete we have to be different! With that in mind, the first differentiation I’d like to assert is that while mimojo has an app (for discovery and enrollment), we are not an app! By that, I mean an app is not required in order to transact with a merchant and benefit from cashback,” said Shaw.
Another differentiator that the CEO pointed out was that mimojo is linked to credit card schemes, not banks. This means two things: first, the company is not limited to serving the customers of one particular issuer; it is available to all as a consumer product. Second, unlike bank-issued cashback cards, the cashback you can earn through mimojo is unlimited.
Tech behind the transaction
The technology, often referred to as Card Linked Technology, is a product that belongs to the credit card schemes that mimojo has shaped into a product that generates savings for customers in the form of cashback.
Customers who sign up with mimojo enroll their credit or debit card and when a merchant partner signs up, they enroll their unique Merchant ID. Therefore, any time an enrolled card is used to pay at an enrolled merchant, there is a ‘handshake’ between the card and payment terminal, allowing mimojo to inform customers immediately that they are due cashback. “The experience is exponentially enhanced as we eliminated the need for any redemption process for either customer or merchant,” said Shaw. “There are zero extra steps during the transaction; think of the time saved by having no operational processes, training requirements, pin codes, disclosure, etc.”
The entire payment process is managed within the card scheme’s infrastructure. The initial payment made by the consumer to the merchant happens precisely as it would in any other regular credit/debit card transaction. The scheme notifies mimojo in real-time that a transaction has taken place, and the company’s technology records and communicates the event to the consumer, adding the cashback to their mimojo tally. This status is visible on the savings screen within the mimojo application. On the 15th of every month the scheme is informed as to the accrued cashback due to each member, and that amount is disbursed directly back to each consumer’s card via the scheme itself.
“We are a data-first company. What that means is the foundation of our business is based on rock-solid data,” Shaw explained. “This isn’t data insights alone but starts ground-up from data engineering to data science and analysis.”
Three core ways mimojo leverages data are:
Personalised user experiences: By analysing user data, including past purchases and preferences, mimojo tailor recommendations and promotions to individual users.
Optimised merchant offers: The user behaviour data allows merchants to optimise and market their offers based on real-time trends and user behaviour.
Platform enhancement: mimojo’s spread of internal and external systems, including AI-enhanced reporting and insights, allows us to monitor and improve all technical touchpoints.
Consumer behaviour
“The market is dynamic, and so are customers and their behaviours,” explained Shaw. “So, it’s essential we have our finger on the pulse of the industry. And the way we do that is through continuous market research and data analysis.”
He said that, in addition to closely monitoring trends and customer feedback, mimojo also talks directly to merchants to iterate and evolve its products and services accordingly.
Talking about expansion plans, Shaw stated, “technology development moves so quickly so our first concern is understanding when and how we upgrade and expand our offering to meet market requirements. Naturally, operating within the region appeals as there is so much cross-pollination opportunity, however, the timing and order are yet to be determined. In terms of business sectors, again, this is a natural evolution given the technology is so flexible and can be adapted to so many use cases outside of simply issuing cashback as we’re doing with our consumer proposition.”
With its focus on continuous improvement and flexibility, mimojo remains well-positioned to adapt to evolving market demands and expand its offerings. It promises a future where cashback is not just a perk but an integral part of everyday shopping experiences.
