Exclusive: Plum pursues premium offering with new cash back feature

About one in four of overall new users are converting to Plum's premium tiers (Plum Pro and Plum Plus).

Money management app Plum has struck a new deal with New York-based Button to offer its paid for premium users a new cashback and rewards feature.

Through Button’s API, offers are personalised to users. Customers will be rewarded with cash of up to 11 per cent each time they spend online with major retailers like ASOS, Groupon and FarFetch, with more retailers to be added soon.

The new service is part of the Plum Pro offering which charges £2.99 per month. About one in four new users are converting to Plum's premium tiers (Plum Pro and Plum Plus), a spokesperson for Plum told AltFi.

Plum Pro offers a number of features alongside the new Cashback:

• Access to FSCS-protected Interest Pockets with Investec currently at 0.6 per cent on cash.
• Access to its investment platform (also available by itself without the other Pro features for £1 a month).
• Ability to create multiple Pockets with recommended targets and goals based on spending.
• Smart saving rules which set money aside based on certain rules.
• Monthly diagnostics report.
• True Balance, its own algorithm calculating what is 'safe to spend' each month taking into account regular and usual expenses.

The full Pro option is currently only available to iOS users although a reduced price is available for Android with fewer features.

Victor Trokoudes, CEO and co-founder of Plum (pictured), says by teaming up with Button, it's able to leverage its user base's rich transaction data to help them put extra money aside when they are spending.

"For us, the combination of Button's smart technology paired with the brands that our users love already mean that we can bring real financial benefits to our users and stay true to our philosophy of making saving effortless and automatic. We're excited to see success already with major brands like Groupon and look forward to adding more over the coming months," he said.