image of a hand holding mobile phone showing the loading page of the Tesco PayQwiq app

Innovation in mobile payment at Tesco


Tesco, one of the world’s largest retailers, wanted to explore opportunities for entering the mobile digital wallet space. Newt Idea was tasked to help with a detailed examination of the state of play of digital wallets and how Tesco could offer its customers a useful and rewarding mobile digital wallet.

The Challenge

As a major retailer very aware of the opportunities afforded by digital transformation, Tesco wanted to offer their customers a simple, quick and convenient way to pay for their purchases via mobile devices.

Tesco engaged Newt to clarify their m-payment offer for customers and formulate the wider service design guidelines for the digital wallet service. This was to be used as a brief to align business stakeholders across internal verticals and define the unifying direction for the proposition.

example of the final design for the Tesco Payqwiq app and website

Our Thinking

To create an offering in a market where there was little demand at the time, Tesco needed to develop something clear, simple and unique for its customers.

Starting with customer insight, we quickly discovered that there was a significant number of Tesco customers who might be missing out on their loyalty benefits. The Tesco Digital Wallet could offer these customers both a quicker way to pay and the benefit of easy access to instant and personalised loyalty rewards.

Unlike other digital payment providers, the digital wallet would couple easy and quick digital payments with a well established loyalty programme, delivered at point of sale in Tesco’s extensive nationwide network of retail outlets.

“Newt shone as our trusted partner during the project … galvanising Tesco stakeholders and working tirelessly towards delivering the shared vision.”

Business Outcomes

Newt established a service design framework that defined how Tesco could position a digital wallet which would differentiate itself from other retail competitors. Throughout the journey, we helped influence key senior stakeholders within the business and rally them to a common vision of a digital wallet at Tesco.

This ultimately led to funding being approved for a design team to make the digital wallet into a reality. The PayQwiq wallet is now available to customers, following a highly successful trial in stores across the UK.

If you would like to find out more, get in touch at

image of a hand holding mobile phone showing a page of the Tesco PayQwiq app

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