Sharesies launches new debit Mastercard where spending can earn customers 1% back to invest

Tens of thousands of customers have signed up to be on the Sharesies Debit Mastercard waiting list, the trading platform says.

Sharesies is launching its own debit card today and promising the new product will be a change from traditional card reward programmes.

The micro-trading platform says the Sharesies Debit Mastercard will earn customers 1% “Investback”.

That meant earnings accrued from using the card would automatically be invested on a weekly basis into a nominated investment on the Sharesies app.

Sharesies said its collaboration with Mastercard would create the first card capable of helping Kiwis earn investments on their spending.

“There are no caps or minimum spends on the amount that can be earned.”

More than 30,000 customers had already signed up to the card’s waiting list, Sharesies said, with 6000 getting early access to the card in a Beta testing phase.

In that phase, customers could start earning on their spend from their first eligible transaction.

Sharesies said these customers could also see their Investback earnings in the app when the feature became available.

The new pink card was being launched at a time when Sharesies said regulators were encouraging more competition in the sector.

“Our card is designed to harness the power of compounding returns and translate a simple purchase into helping people with their long-term financial goals,” Sharesies personal general manager Scott Nixon said.

“We believe that managing spending alongside long-term financial goals is a key part of building wealth,” he added.

“We set out to develop a card that empowers people to feel confident and in control of their spending, while also supporting their financial future.”

Nixon said the new offering would have competitive fees and rewards.

Sharesies said cardholders would have the ability to freeze and unfreeze cards, and turn online payments on and off.

It said users would be able to view their spending, investments, insurance and KiwiSaver balance within the Sharesies app.

Sharesies said it would waive fees for the new Spend service for its customers until February.

After that, people on a Sharesies plan will pay a $12 annual account fee. Those not on a plan will from February pay a $25 annual fee.

A 0.5% currency exchange fee will apply on overseas purchases.

People with the card will get a maximum of three free ATM withdrawals each month and additional withdrawals will cost $5.

Sonya Williams, Brooke Roberts, Martyn Smith, Leighton Roberts, Ben Crotty and Richard Clark founded the company in 2017.

By late 2022 it had about half a million users and announced the start of its own KiwiSaver scheme.

By July 2023 it was managing at least $2.5 billion worth of assets.

In April this year it managed assets worth $8b-$9b and Roberts told the Herald managed funds had always been the most popular choice among its investors.

Air New Zealand is the top individual company favoured by Sharesies investors, with about 100,000 people invested in the airline.

Mastercard New Zealand and Pacific Islands country manager Ruth Riviere said Sharesies had championed education and accessibility across various financial services.

Riviere said New Zealanders’ ways of managing and spending money had evolved substantially over just the past decade.

Cardholders were becoming more sophisticated in their knowledge and expectations, she said.

Sharesies said it now had more than 880,000 customers across Australia and New Zealand.

In August this year, Roberts told RNZ the investing platform had more than 1500 portfolios with more than $1m invested.

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