Modus Clarifies Crypto Cashback Offer After Rejection from Retailers

London-listed fintech group Mode was forced to resign over claims it would offer cashback in Bitcoin to shoppers at retailers including Boots, Homebase and Ocado after the companies denied its involvement.

Mode shares rose as much as 15 percent following the announcement on Thursday, only to fall 14 percent on Friday after the company was forced to release a statement clarifying its previous claims.

Mode said it still plans to launch its crypto cashback product in the second quarter of 2022 and said it has more than 40 online merchants on board.

However, the company said Friday that "certain specific brands were mentioned as having approved Mode as part of their affiliate programs at the time. . . [but] some of these mentioned brands have since withdrawn Mode as an affiliate."

Boots, Ocado and Homebase said they were not involved in the fashion scheme. The denials were first reported by The Times.

Boots said: “We have not been approached by Mode directly and they have used our name without permission in their press releases and marketing materials.”

Ocado said it “never had any connection to Fashion or any involvement with its announcement on November 18, 2021”.

Mode chairman Jonathan Rowland said on Twitter: "We're happy with what we published [on Thursday] because it was the right thing to do. Some brands don't want to be associated with crypto even though they approved us through the affiliate process. Unfortunately we can't control that."

Mode was founded by Rowland six years ago to harness “the power of breakthrough innovation,” including Bitcoin. The son of former Conservative Party treasurer David “Spotty” Rowland, his company offers a Bitcoin investment platform as well as payment services for merchants. It was listed in London in October last year.

Mode announced a Bitcoin cashback program with THG on October 12th.

Jonathan Rowland was previously CEO of Banque Havilland and co-founder of Redwood Bank, which provides savings and mortgage services to small businesses in the South East and North West of England.

At the time of the initial announcement, Mode CEO Ryan Moore said:“This is an important step in making the asset class more accessible to consumers of all demographics and ultimately bringing Bitcoin into the hands of millions of customers across the UK.”