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Santander pays 5% cashback when you pay by mobile phone

You've got 76 days to make the most of cashback on Android, Apple and Samsung Pay spending

Paying for goods and services using your mobile phone could net you 5% cashback with Santander this summer.

Under the offer, Santander 123 Lite Current account customers can earn 5% cashback on all purchases using their debit cards via Apple Pay, Android Pay and Samsung Pay. The two-and-a-half month deal runs from 17 July to 30 September, with the bonus paid out by the end of November.

This cashback deal is being offered in addition to the cashback you can earn on the account when household bills are paid by direct debit.

Cashback Bills
1% Water, Council Tax, Santander mortgages
2% Electricity, gas, Santander home insurance
3% Mobile, home phone, broadband, paid-for TV
5% Apple, Android, Samsung Pay (between 17 July and 30 September 2017)

How do mobile payments work?

You can link your current account debit card to your phone, and pay for things simply by holding it over a contactless reader using near-field communications (NFC) technology.

With Android payments under £30 you can pay via contactless but you’ll need to unlock your phone first for payments over £30. Many big retailers accept Android Pay, who often promote their own loyalty schemes, such as the Costa Coffee program.

Apple Pay allows you to use your iPhone and/or Apple Watch to make payments. All these three are at least as secure as using standard contactless cards. Samsung also has the benefit of working with older magnetic stripe terminals.

How does this compare to other cashback current deals?

If you use the Santander 123 Lite account to its fullest – include paying your direct debits from the accounts and earning the mobile pay bonus – you could earn a significant amount.

If you spend £10 a day on your mobile for the July to September period (76 days in total), you’ll earn £38 cashback.

We’ve calculated that you could earn an additional £73 in cashback over a year if you paid bills of £33 for water, £94 for energy, £40 for your mobile phone/data, £29 for landline/broadband, £18 for TV package, and £128 for council tax.

Added to the mobile pay cashback, and after the £12 annual fee Santander charges, that makes a total of £111. But if you spend £30 a day (the maximum spend) you’ll get an impressive £114, bringing your annual total to £187.

That exceeds its closest rival, Barclays, which requires you to take out a host of financial products to boost the cashback you can earn.

Provider Cashback deal Maximum annual cashback Annual fee
Barclays Blue Rewards £7/mth for your current account, £3/mth on Barclays home insurance; £5/mth on Barclays mortgage; £1/mth on Barclays personal loan; £5/mth on Barclays life insurance, up to 5% cashback on shopping £84 £36
Co-op Bank Everyday Rewards £4/mth if you pay in £800 and pay out 4 direct debits, plus up to £1.50 for using debit card £66
Danske Bank Reward £7/mth, if you pay in £1,200 and pay out 3 direct debits (available in Northern Ireland only) £84 £24
Halifax Reward £3/mth if you pay in £750, stay in credit and pay out 2 direct debits, plus 1% cashback on selected shopping £36
M&S Bank Current Account New customers only: £5/mth added to an M&S gift card if you pay in £1,000/mth and keep two direct debits active, plus £125 M&S gift card for switching £60
NatWest/RBS Reward 2% cashback on household bills paid by direct debit (from 26 July), no minimum monthly funding required, plus 1% cashback with selected retailers £58 £24

To benefit from Santander’s latest offer you must have a working smartphone, pay in £500 a month, set up two direct debits and log into online or mobile banking at least once every three months.

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