Cheddar is an FCA-authorised UK cashback app with over 250,000 users that pays you back instantly when you buy gift cards for shops you already use. Instead of waiting weeks for tracking like traditional cashback sites, you buy a Tesco or Sainsbury's gift card through the app, get cashback credited straight away (up to 15% at some retailers), then spend the gift card on your normal shopping.
Customers
250k
UK accounts
Founded
2021
5 years old
App Store
4.8 ★
3.4k reviews
Google Play
4.7 ★
1.2k reviews
Live offers
1
Worth £3
Cheddar Payments Limited is authorised and regulated by the Financial Conduct Authority as an Authorised Payment Institution, Firm Reference Number 940075. Cheddar is not a bank and your money is not protected by the FSCS.
Cheddar is a UK gift card cashback app from an FCA-registered EMI. Buy a card through the app, get cashback credited instantly, then spend the card at the same retailer. Quidsy has a free cash offer for new signups. Good fit if you do regular supermarket or food delivery shops. Stack with a credit card for double up.
Last checked:
Value
£3
Best visible rate right now: 11% with Adidas.
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Costa Coffee
Cineworld
Cheddar is an FCA-authorised UK cashback app with over 250,000 users that pays you back instantly when you buy gift cards for shops you already use. Instead of waiting weeks for tracking like traditional cashback sites, you buy a Tesco or Sainsbury's gift card through the app, get cashback credited straight away (up to 15% at some retailers), then spend the gift card on your normal shopping.
The clever bit? You're buying gift cards for places you'd spend at anyway, so the cashback is essentially free money on shopping you were going to do.
It works best for organised shoppers who plan their spending. If you do a weekly supermarket shop at Tesco or pick up a Just Eat order most weeks, buying gift cards in advance means free cashback on money you'd spend regardless. It's less suited to spontaneous shoppers, because you need to remember to buy the gift card before you check out and you're committing that money to one specific retailer.
But for regular expenses like groceries, takeaways, or planned purchases, the instant cashback adds up. Cheddar won Best Newcomer at the British Bank Awards in 2024 and Best App at the Open Banking Expo Awards in 2025, so the product itself is well-regarded.
Yes, Cheddar is legitimate. Cheddar Payments Limited is authorised and regulated by the Financial Conduct Authority as an Authorised Payment Institution (Firm Reference Number 940075, authorised July 2021). The company is registered at Companies House in England and Wales (No. 12895809) with its office in London. So this is a real, FCA-supervised business, not a clone or scam app.
A couple of things worth knowing about how Cheddar holds money. Cheddar is not a bank. Its own terms state it does not hold money in your account like a bank does, and your balance is not protected by the FSCS (the scheme that covers up to £85,000 in a UK bank failure). What that means in practice: when you buy a gift card, money goes from your bank to the retailer via Cheddar, and any cashback you earn sits in your Cheddar balance until you withdraw it (minimum £5) back to your bank.
To pay, you connect your bank account through Open Banking, which is regulated by the FCA and only allows transactions you approve each time. The cashback itself comes from Cheddar's commercial deal with the gift card issuer (Tillo and others), not from your bank.
£3 Free Cash
Ended 5 Feb 2026
Next step
£3 Free Cash is the strongest live Cheddar route we have listed right now.
JD Sports
Pizza Express
Uber Eats
H&M
New Look
Cheddar works best for organised shoppers who plan their spending. If you do a weekly supermarket shop at Tesco or Sainsbury's, buying gift cards in advance means free cashback on money you'd spend anyway.
It's less suited to spontaneous shoppers or those who prefer flexibility over savings. You need to remember to buy the gift card before you shop, and you're committing that money to a specific retailer. But for regular expenses like groceries, takeaways, or planned purchases, the instant cashback adds up quickly - around £200 per year for an average household.
Buy a gift card through the app and Cheddar credits the cashback to your balance immediately, no 30 to 90 day tracking window like traditional cashback sites.
Covers the supermarkets you actually use (Tesco, Sainsbury's, ASDA, Morrisons, M&S), food delivery (Just Eat, Deliveroo, Uber Eats), and high street regulars like Boots, Costa, and Starbucks.
Rates vary by retailer and change over time. Supermarkets are usually 2 to 5%, while dining, entertainment, and some non-food retailers go higher when promoted.
Link your bank account once and pay directly. No card numbers stored in the app, and every payment needs your explicit approval through your banking app.
You can buy when the rate is high and use the card later. Worth checking each retailer's gift card terms though, because a few have expiry windows.
Cheddar is genuinely useful if you're willing to add one extra step to your shopping routine. The concept is simple: buy gift cards for shops you already use, get instant cashback, spend the gift card on your normal shop. There's no complicated tracking and no waiting months for payouts, which is the bit that puts most people off traditional cashback sites.
The savings are modest but real. Don't expect headline 15% rates on your weekly Tesco shop, because the supermarket end usually sits at 2 to 5%. Higher rates show up on dining, entertainment, and occasional retailer promotions, and they're worth keeping an eye on. If you do a regular Tesco or Sainsbury's run, that's a steady drip of cashback on spending you'd do anyway.
The app rates 4.8 on the App Store and 4.7 on Google Play, it's FCA-authorised, and it's picked up two industry awards in the last two years, so the operational side is solid.
The catch is the routine change. If you can't remember to buy a gift card before you check out, the cashback never happens. For organised shoppers who like a system, Cheddar is an easy win. For impulse buyers, it'll gather dust on your phone.
