London Startup Tail Offers Users Cash Back On Purchases Through Open Banking

London-based Tail, a FinTech startup, offers its users heavy discounts at local places, linked to the card they pay with and delivered each week in the form of cash back.

According to news from TechCrunch, the mobile app also offers a glimpse into the promise of open banking, which is facing upcoming legislation in the EU and U.K. and will force banks to offer third-party developer access to a person’s bank account data (with their permission).

Tail is initially available for iOS and is currently only serving London. The app is being built on top of digital-only challenger bank Starling’s API, with Monzo integration also in the works. That means that users with a Starling bank account can grant the Tail app access with a simple tap of a button.

Once they’ve agreed to a set of permissions, any cash back offers that pop up in the Tail mobile app can be redeemed simply by using their Starling Mastercard at the corresponding merchant.

“Tail is turning open banking APIs into an offer platform, thereby eliminating all friction points for retailers and consumers, which are still inherent in today’s solutions,” Tail Founder and CEO Philipp Keller said. “Using Tail, consumers can browse through a selection of curated offers, which are pre-linked to their bank card, eliminating the need for physical vouchers or coupon codes. The offer feed is updated in real time and [is] location specific. Redemption happens in-app, allowing for a more discreet way of redeeming offers, and accumulated savings are distributed back to the user in the form of cash back paid out in regular intervals.”

In addition, the FinTech startup makes the process easier for merchants, who can simply provide card details and tell Tail what type of campaign they want to run, the discount and the applicable times.

For example, flash campaigns via Tail could include a merchant offering 50 percent off on a rainy day, or putting up an offer for the next 30 minutes during an unexpected lull in foot traffic. And sequenced offers can entice first-time customers to become repeat customers, such as different discounts depending on if it is a first, second or third visit to a particular restaurant.

“We’re looking to turn this into a self-serve platform at some point. At that point, it will be even easier; just insert campaign type (first-time customers, off-peak hours, etc.) and enter card details,” said Keller.