Asda has announced major news this week as it has announced a partnership with Jaja Finance to launch a new reward credit card that will allow customers to earn ‘Asda Pounds’.

The pounds can later be used in Asda stores and online.

With the new card, shoppers can earn 1% back in the Asda Pounds when using their card to buy groceries, fuel and other Asda services. On top of that, customers would get 0.3% cashback on all other purchases outside of Asda.

Shoppers using the new credit card will be rewarded through Asda’s new loyalty programme, Asda Rewards, every time they shop. You simply need to download the Asda Rewards app and link it to their credit card to earn 1% for every £1 spent with Asda.

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The Asda Rewards scheme will be expanded to 300 stores from Thursday, July 21 as it rolls out to more stores and online this summer.

This means that customers can spend the cash they’ve earnt in even more stores or online by creating vouchers in their Asda Rewards app and scanning their phone at the till when they shop.

Alternatively, you can save and build up your Cashpot for those big moments later in the year.

As an introductory offer, customers applying before August 28 will earn a higher rate of 2% back on their Asda purchases.

Katie Walley, Senior Director Asda Money & Mobile, said: “We’re always looking to make shopping that little bit more rewarding for our customers, which is why we are launching a credit card in conjunction with our new digital loyalty app – Asda Rewards.

"By using the new Asda Money Credit Card customers will be able to earn Asda Pounds every time they shop by getting 1% back on all Asda purchases including fuel to later spend in store or online.”

David Chan, CEO at Jaja Finance said: “Rewarding consumers has never been so important and our partnership with Asda means we can give customers something back through the Asda Money Credit Card and Asda Rewards programme.

"The increasing cost of living and rising inflation means households are rapidly feeling the pressure. With the Asda Money Credit Card, customers can get rewarded for the things they’re already buying, and benefit from money off at Asda by using the rewards that they’ve collected.”

The credit card is supplied by VISA and is priced at 22.9% representative APR with no annual fee.