Jiko today announced that it has processed a massive $4.7 million debit card transaction as part of its newly launched Debit Cards Cashback Rewards Program. A tax payment to the IRS made with a Jiko Debit Card, this single transaction resulted in $47,000 cash back to the customer, deposited directly into the customer’s account for immediate spending.
Jiko replaces bank deposits with fluid government-backed Treasury Bill investments, which can be spent in real time by customers via debit transactions. Jiko’s Debit Card Cashback Rewards Program passes the interchange income — income usually kept by banks — back to the customer in the form of 1% cash back on qualifying purchases. The $4.7 million IRS payment was processed through Jiko’s Virtual Debit Card for Tax Payments feature, which operates on the Discover Network, and is currently available for all users.
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“We’ve made it possible for customers to benefit from debit card rewards, just as they’ve experienced credit card rewards in the past,” said Stephane Lintner, CEO and co-founder of Jiko. “Because Jiko is the bank, we collect the fees that banks typically collect from merchants. However, our unique, subscription-based business model means that unlike banks, we can pass those fees directly to our customers, small and large, creating this Debit Cards Cashback Rewards Program.”
