Cheddar has announced it will wind up operations effective 31 August, 2023.
The deal discovery app was launched in 2021 by Commonwealth Bank venture scaling entity x15 ventures.
Cheddar rewarded Gen Z and Millennial Australians for shopping with retailers, utilising AI to target users with personalised brands, content and deals, as well as rewarding them with cashback.
Cheddar has ceased processing new purchase transactions and offered customers the ability to withdraw available cashback balances by 31 August.
All pending cashback transactions and bonuses where a qualifying transaction has occurred are to be approved by 6 May.
Cheddar has paid out more than $2 million in cashbacks and bonuses since launch.
The closure comes at a competitive time for cash-back operators, with ShopBack servicing more than 35 million customers across APAC via brands including Target, ASOS and eBay. Last year, Westpac injected $44 million into the rewards program and targeted customers with access to exclusive offers via a dedicated hub.
ANZ also has a partnership with the country's second-largest cashback app Cashrewards.
"We started Cheddar to help young Australians get more back from their everyday spending – and we’ve done just that," the company said in a statement to customers.
"Since launching in November 2021, we’ve brought you incredible deals from more than 1,000 of your favourite brands and paid out $2 million in cashback and bonuses. It’s been a wild ride but now it’s time to say goodbye and close up Cheddar."