After releasing their results, the Australian financial service provider, Flexigroup, unveils “Bundll”: a Mastercard-linked Pay Later product to launch in the end of 2019.
Bundll relies on a Buy Now, Pay Later option and companion Mastercard virtual debit card for purchases up to$1,000. Customers may pay back within 15 days.
How it works.
Customers subscribe in-app and are provided with a virtual card
The card can be paired with a digital wallet, including Apple Pay or Google Pay
No account-keeping fees are applied; and this option is interest-free
Each week, Bundll-based transactions are aggregated (within the limit assigned when opening the account): the users then have two weeks to pay back
No prior credit score verification but self-reported information let them define the customer’s available budget.
Customers may delay their payments and get an extra two weeks to settle their transaction (an option charge $5).
They may also pay back in 6 instalments over 3 months (an option charged 5% of the amount they need to spread).
Targeting Millennials. Bundll is mostly intended for Millennials, interested in flexible, instantly available payment options.
Standing out from competition. Bundll is meant for everyday purchases (food, outings, transportation), unlike other services, such as Afterpay, rather intended for large-amount or occasional purchases. This service builds on a free Pay Later feature and a credit facility to favour flexibility.
Building their position. Based on a partnership with Mastercard, Flexigroup adds further credibility to their product, and has access to a global acceptance network: an actual lever for securing Australian customers’ loyalty.
Flexigroup is yet another FinTech featuring a Buy Now, Pay Later solution, and faces competition in Australia from Afterpay as well as the US-born Sezzle. Other outstanding examples in this industry include Fintonic (Spain) or and Klarna (UK) with “Slice it”.