Snapcart, a service that allows users to receive cashback by scanning their shopping receipts into the app, has soft launched its platform in Singapore. The official launch is slated for February 1.
The app was previously only available in the Philippines and Indonesia — its country of origin. The app has also recently expanded to Brazil.
“We are launching to meet the growing demand from clients for a more innovative solution to better understand the Singaporean market.It is also a strategic location for us because the majority of our regional clients are based here, allowing us to serve them better,” said Teresa Condicion, Co-founder & Chief Data & Operations Officer of Snapcart.
“In addition, it gives us access to great tech talents to support our continuous AI research, in a vibrant startup environment,” she said.
Before, the amount of cashback awarded was based on the items purchased, but the new iteration calculates the cashback based on the total value of the receipt.
For example, if the receipt value exceeds S$150 (US$115), the amount of cashback that will be awarded is S$1 (US$80). For receipt valued between S$1 to S$9.99, S$0.05 (US$0.04) will be awarded.
The app states that eligible receipts include groceries, medicine, and cosmetics receipts. They also have to be printed and can only be 3 days old or earlier.
Launched in 2015, Snapcart has raised US$14.7 million in funding to date. Its last round was a US$10 million Series A round led by Vickers Venture Partners.
By getting users to submit receipts, the platform provides customer analytics and insights to businesses, allowing them to better understand their spending behaviour.
While ShopBack is the dominant cashback app in Singapore, Snapcart does not see itself as a rival to them.
“It’s quite a common mistake to compare us to ShopBack, since they are in the affiliate marketing / lead generation business while we are in the market research business. We maintain an unbiased & representative user base/ panel. Therefore, there are no merchants on the platform,” said Araya Noon Hutasuwan, co-founder and CFO of Snapcart, told e27.
“We’re not incentivizing you to go to any store or buy any product. Users can go about their normal shopping behaviour. But instead of throwing away their receipts, they can get cash back,” she said.
ShopBack too does not see Snapcart as a competitor.
“They [Snapcart] are mainly in the offline space while we’re still focusing on the online space,” said Wu Ying Ying, Regional Head of Communications at ShopBack.
“It’ll be very interesting to see how Singaporeans react to it. They will also help to increase the general awareness of cashback – which is quite important since there are people who still don’t quite understand cashback.”
Snapcart Founder and CEO Reynazran Royono previously said that Snapcart plans to launch a new platform that will tackle the unstructured trade information, that is stores who do not have cashiers (hence do not produce receipts).
He also said that Snapcart plans to enter Thailand, Malaysia, and Vietnam.
Image Credit: Snapcart