Mastercard has teamed up with electric vehicle leasing firm Octopus EV to help supercharge UK businesses’ transition to EVs.

Through the Mastercard Business Bonus programme, small business cardholders can sign up to Octopus EV’s salary sacrifice scheme and offer their employees an additional £100 charging credit when ordering an electric car.

Salary sacrifice allows employees to lease new or nearly new EVs by sacrificing part of their pre-tax salary, unlocking savings of up to 40% on monthly car costs.

It means employees get access to affordable, tax-efficient electric cars while businesses reduce their carbon footprint and gain an attractive employee benefit.

The partnership strengthens Mastercard’s ongoing commitment to support UK businesses, while Octopus continues to help more UK drivers make the switch to cleaner, cheaper driving.

Fiona Howarth, founder of Octopus Electric Vehicles, commented: “Salary sacrifice remains the cheapest way to drive a new EV. And the benefits are not just for drivers, but for their employers too.

“Companies can cut their emissions, retain staff and save money. By partnering with Mastercard, more businesses, of all sizes, can discover one of the most attractive employee benefits around right now.”

Darren Deal, senior vice president, fintech, government and digital partnerships at Mastercard, said: “It’s great to team up with Octopus EV to help our small business cardholders access more sustainable travel alternatives. Through our Business Bonus programme, Mastercard collaborates with trusted partners to deliver innovative, tailored, solutions that help businesses grow, and this is a prime example of that.”

Over the last four years, Octopus has helped more than 6,000 companies – including PepsiCo, Jacobs Douwe Egberts and TPX Impact – launch EV salary sacrifice schemes.

Such schemes not only help reduce emissions but also boost employee recruitment and retention, with 75% of employees ranking financial savings as their top priority in employee benefits.

In addition, charging on Octopus Energy’s smart EV tariff, Intelligent Octopus Go, can save drivers up to £700 a year compared to diesel and petrol costs.