Monday 02 September 2019
A new app is taking the Buy Now, Pay Later sector by storm, promising to let Aussies make delayed payments for any products, anywhere - all while avoiding interest and fees.
Launching later this year, FlexiGroup’s bundll is a partnership with Mastercard and could be a digital replacement for that debit card in your wallet. Customers can use the app to make everyday purchases at any stores that accept Mastercard - whether that’s the grocery store, the petrol station or your local cafe.
“Australians have not seen a product like bundll before. It’s like a debit card on steroids,” FlexiGroup CEO, Rebecca James said. “Bundll is for the savvy shoppers who want control over how they pay and when, with the ability to use it absolutely everywhere.”
"We see bundll as a truly unique product that will change how people buy, budget and repay with global potential," Division President for Mastercard Australasia, Rich Wormald, added.
Bundll is the only Buy Now, Pay Later product in the market that lets customers make multiple purchases of up to $1,000 at any store where Mastercard transactions are available. And while services like Afterpay or humm suit one-off purchases, bundll is designed for those smaller everyday spends - think groceries, an Uber ride and pizza with friends.
With bundll, you generally have a shorter time period (of two weeks) to pay off your spend, and the good news is, retailers don’t need to sign up with bundll to use it. They just have to accept Mastercard.
Once you’ve been approved, you’ll be given a maximum spending limit of up to $1,000 on your digital bundll Mastercard. The limit you’re assigned depends on the background information you’ve provided as part of the sign-up process.
You’ll be able to link your digital bundll Mastercard to any of your digital wallets, including Apple Pay or Google Pay.
Every week, the purchases you make via bundll over the last seven days are ‘bundled up’ into one place, and you’re given up to a fortnight to pay that ‘bundll’ off.
To make repayments, you’ll need to link a funding source to your bundll account, whether that’s your credit card, your debit card or a transfer from your bank account - similar to PayPal. And to help you stay on top of those repayments, you’ll also receive notifications about when that money will come out of your account.
With bundll, you can wave goodbye to monthly and account-keeping fees, although there’s likely to be a $10 late fee for missed repayments after a 24-hour grace period.
“Instead of monthly fees or charging interest, we’re making the banks pay,” James said. “Bundll makes its money on the interchange fee - which banks charge each other for card-based transitions.”
Facing a financial emergency and can’t meet your fortnightly repayment? No worries! For a flat fee of $5, bundll lets you hit the ‘snooze’ button which delays your payment for another fortnight.
And if more time is needed, you could even create a ‘superbundll’ and extend payments to six fortnightly instalments over 12 weeks, although you'll be charged 5% of the total balance.
According to FlexiGroup Chief Innovation and Growth Officer, Jonathan Kelly, the intention of bundll was always to be “completely on the consumer’s side”.
“Rather than traditional models that rely on late fees within the Buy Now, Pay Later space … we give the consumer the control. If they want to [use these additional features], they can. If they don’t want to, then bundll is always free for them to use on their own terms.”
What’s more, bundll gives customers a 24-hour window for any missed repayments, which means that you can still avoid late fees if you repay your ‘bundll’ within the day after the due date has passed.
“Life gets in the way and something could happen. So rather than just slap a $10 late fee onto your account for whatever [owed money] isn’t in your account, we send you a push notification or a text message,” Kelly said.
That’s a no. Bundll doesn’t check your credit file, so rest assured that signing up and using the app responsibly won’t leave a mark next to your name.
However, your credit score could get affected if you’ve linked a credit card as your payment source and then forget to pay off that plastic.
With bundll not yet launched, information about the product remains a little light - but drawing on our experience with Buy Now, Pay Later services, it’s likely that if you default on payments, they could get sold off as bad debt and also leave a black mark on your credit report.
So be sure to jot the dates on your calendar and make your payments on time - or else, hit the ‘snooze’ button for an extra two weeks if you’re really stuck in a tricky financial spot!
It’s easy! Just download the bundll app, and you’ll be able to sign up in a few steps. All you’ll need to provide are some personal details including your email address, mobile phone number, driver’s licence number and passport number, or you could log in via online banking.
“We always say it takes whatever’s in your head or pocket to sign up,” Kelly said.
Bundll is set to launch in late 2019.
Curious about what other Buy Now, Pay Later options are out there in the market? Head over to our fintech hub for the latest news on digital payment options.