Last week, my roommate recommended a new shopping app called Claim, which offers users cash rewards for purchasing from participating brands each week. Although I was initially skeptical about its security, her Venmo transaction records convinced me to give it a try. Claim was co-founded by Sam Obletz, a Harvard Business School graduate, and his college roommate Tap Stephenson. They first launched the app in Harvard Square at the beginning of 2023 and extended its availability to 10 cities across the United States in February. The application’s model involves brands allocating a portion of their marketing budget directly to consumers instead of paying for ads on social media platforms. This is a significant shift, considering that digital advertising spending in the U.S. is expected to exceed $300 billion by 2024, according to eMarketer. Obletz explains that Claim is designed to assist brands that struggle to measure the effectiveness of their advertising. Currently, the app collaborates with nearly 50 companies in the food and beverage industry, returning 80% of the allocated funds to consumers while the platform retains the remaining 20%. If users do not claim their weekly “Drop” rewards, Claim does not benefit financially from them. The app’s goal is to attract health-conscious, young consumers and, interestingly, to reduce their time spent on social media. Obletz emphasizes that Claim does not want users to linger on the app but rather to use it once a week and then spend time with their friends. To ensure data security, Claim partnered with the fintech company Plaid to manage payments. The platform only collects information about where users make their purchases and does not access their login details or card numbers. Obletz is firm in his commitment: “Claim will never sell user data.” Additionally, by tracking users’ spending patterns and using AI models to personalize rewards, Claim can provide valuable insights to its brand partners. Obletz believes this model is a win-win for both brands and consumers. Brands receive more accurate market feedback, and consumers avoid the hassle of invasive ads. While Claim is not yet profitable, the company is focusing on rapidly expanding its user base. By early April, Claim had attracted over 200,000 users, with a monthly growth rate of 35%. More impressively, the user retention rate stands at 56%, well above the average for shopping and social media apps on iOS. Claim has garnered significant attention from venture capitalists, including a $20 million investment from Sequoia Capital. Obletz plans to expand the business to more cities over the next 12 to 18 months. He envisions Claim as a revolutionary platform, akin to the early days of Facebook, which could transform the consumer experience. The challenge, he notes, is not to keep users engaged on the app but to encourage them to go out and spend. Industry experts have given Claim high praise, recognizing that its model effectively attracts young consumers and offers more precise market feedback compared to traditional advertising. This feedback is invaluable for brands, providing them with tangible benefits. The founders' backgrounds, which include experience at top financial institutions like Goldman Sachs, further bolster trust in Claim’s technical capabilities and business acumen. In summary, Claim is a promising new shopping app that is reshaping the way brands interact with consumers by offering a unique blend of cash rewards and data privacy. With strong growth metrics and investor confidence, the app is poised to expand and continue challenging the norms of digital advertising.