Swipii has said it will use the funding to add further features to its customer loyalty app which earns cashback for users as they shop. The firm said it would then extend the technology beyond its home city.

With Swipii, customers can securely link their bank cards and earn cashback on purchases. The app works with contactless, chip and pin, Applepay and other methods of spending.

The Swipii app also provides retailers with information about customers’ habits, allowing companies to improve marketing by targeting potential buyers with things they might want, rather than just indiscriminate price-cutting.

Cashback amounts can also be varied to attract repeat visitors or to drum up trade at quiet times, The Insider reports.

Louis Schena, chief executive, who co-founded Swipii in 2014, said: “Our ultimate goal is to help businesses of all shapes and sizes to thrive on our high streets. We can only do that if we offer a product that is 10 times easier to use and offers 10 times more value to consumers and retailers, than anything already out there today.”

Paul Munn, partner at Par Equity, added: “We have been working with Swipii for over a year now and have been impressed by how focused the team are on driving the most value for both consumers and businesses.

“The team have, in that time, moved with pace to test and launch key new product features and we’re looking forward to seeing some of the team’s ongoing projects come through to fruition ahead of its expansion plans.”