Tesco has launched a new app which lets shoppers go wallet-free – and early adopters can earn an extra 500 Clubcard points.

The PayQwiq app stores your credit or debit card and Clubcard details on your phone, then lets you quickly pay for your shopping and automatically collect Clubcard points with just one swipe.

It currently works in Tesco stores in London, Edinburgh, Northern Ireland and Plymouth, though there are plans to roll it out across the UK by the end of the year.

Tesco began 'invite-only' testing on the app last year, but has now formally launched it to Android and iPhone users. As part of the launch, users can earn up to 500 extra Clubcard points (worth £5 or up to £20 using the Clubcard Boost scheme) by making five transactions using the app.

How does the app work?

The PayQwiq app, which is free to download, allows you to pay for shopping and fuel and collect Clubcard points with one swipe of a barcode on the app.

Here's how to get it:

  1. Download the PayQwiq app on Android or iPhone.
  2. Log in using the email and password you use for your Clubcard account, and set up a security number.
  3. Add your credit or debit card details to the app (it works with Mastercard, Maestro, Visa and American Express).
  4. Use the 'Pay' barcode to pay for your shopping and collect Clubcard points.

The app links to the existing Clubcard app (though you'll have to sign in again using your Clubcard number) so you can check your points balance. You can also use the same PayQwiq account on up to two phones.

Tesco checks your card is genuine by making a £2 request to your account. The money won't actually be taken but in some cases it will appear on your transactions and then disappear.

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Where can I use it?

While Tesco says the app will be rolled out across the country by the end of the year, it can currently only be used in stores in London (counted as within the M25), Edinburgh, Northern Ireland and Plymouth.

You can see a list of some of those stores here – this list only includes London and Edinburgh shops currently, but we've been told the website's being updated. You can also use the app in any Tesco stores in Northern Ireland and Plymouth.

Although you can only use the app in certain regions for the time being, anyone in the UK can download the app now – so for example, if you live outside London but work there, you can get the app and the bonus points now.

The app works in every kind of Tesco store, including Tesco Express, Metro, Extra, Superstores and petrol stations.

Tesco payment app PayQwiq launches offering 500 Clubcard points bonus
New Tesco payment app PayQwiq launches offering 500 Clubcard points bonus

How do I get the bonus points?

As an added incentive to start using the app, Tesco's offering every user who signs up now an extra 100 Clubcard points for each of the first five times they make a transaction using PayQwiq.

You simply need to add your Clubcard details to the app and use it to buy something. The bonus points will be automatically added to your account within three weeks of the transaction, and then sent out to you as vouchers as normal (every three months) to be redeemed.

You've until 16 October to make the transactions, and there's no minimum spend to collect the bonus points.

The 500 Clubcard points are normally worth £5 but you can double, triple or even quadruple their value using the Clubcard Boost scheme, which lets you swap your points for vouchers to spend on restaurants, days out, cinema tickets and more. See our Reclaim and Boost Tesco Vouchers guide for more info.

What does Tesco say?

A Tesco spokesperson says: "At Tesco, we are always looking to make the shopping experience simpler and easier for customers and that's why we've developed PayQwiq.

"Customers can use PayQwiq to pay for their shopping and collect their Clubcard points all with one simple scan of their phone.

"Feedback from customers who have used PayQwiq has been very positive, and we're delighted to extend the availability of PayQwiq to Tesco customers in more locations."