Zipzero, a British consumer app, has announced that it has managed to attract initial funding of 1 million pounds.

Source: Pixabay.com

Funding was received from a wide range of investors, including Craig Dewar of Global Processing Services. This application is designed to combat the cost-of-living crisis by encouraging users to exchange data on receipts from everyday purchases, which are then used to pay utility bills.

Currently, the number of Zipzero users is more than 100 thousand people. The company intends to direct the initial financing to ensure cooperation with new retailers and brands. The firm has previously established partnerships with Asda, Boots and Sainsbury’s, and eBay.

More than 30 thousand new users registered in the app in January. Consumers are interested in the firm’s services because they currently need tools to combat double-digit inflation and large electricity bills that continue to rise.

Mohsin Rashid, CEO of Zipzero, says that the main goal of the company’s activities is to expand the financial capabilities of customers. According to him, the firm creates a fair ecosystem of retail trade, providing consumers with the opportunity to receive monetary rewards for purchases from their favorite brands and sellers.

The company believes that the client has the right to earn on transaction data. Every time a consumer makes purchases from one of the firm’s retail partners and receives a reward, Zipzero receives a commission for processing the sale. Most of this commission is used to cover the rewards. This way closes the cycle of honest consumer exchange.

Zipzero is not the only fintech company that follows the idea of monetizing purchase data. In January, the Irish firm Unbanx launched an open banking tool that allows consumers to share transactional information with popular brands in exchange for a reward in points.

As we have reported earlier, Payments Intelligence Startup Pagos Raises $34 Million.