In response to some sobering statistics on the way buy now, pay later (BNPL) shopping makes customers feel, Up bank has launched Maybuy, which automates instalment payments before purchasing an item.
A survey commissioned by Up found that 57% of young Australians were interested in a savings-based alternative to BNPL, 27% have made BNPL purchases they later regretted and 29% said BNPL makes them feel stressed.
With MayBuy, Up banking customers can create an automated savings plan for items they’ve found online, and upon reaching their goal, will be given the chance to go ahead with the purchase or reconsider and keep their money.
Up CEO Xavier Shay says buying things should be enjoyable, and there should not be a heap of stress involved.
“Retailers and e-commerce don’t want stress associated with shopping,” he said. “That’s bad for them.”
With Maybuy, Up is trying to recapture some of the goal-oriented excitement of purchasing things as children.
“We couldn’t buy now, pay later,” he said. “We had to save up our coins for that toy we really wanted.”
Speaking with SmartCompany, Shay spoke of the desire, anticipation and journey that went into saving for these purchases.
“These associations are actually good for customers and retailers as well.”
Up Bank, which was touted as Australia’s first digital bank, has a focus on millennial and gen Z consumers. It caters to them with products tailored to their life experience, and creative design that aims to designate Up from the mainstream, straight-laced image of traditional banks.
It has a home saver feature and on June 20, it launched Up Home, a home loan product for existing customers.
So will Up stay a youth bank, or will it follow gen Z and millennials throughout life’s big financial moments?
“We’re a bank for everyone,” said Shay. “We’re pretty popular with the younger set at the moment, but growing with people as they do is definitely a big part of what we do.”
The research, a survey of 1000 Australians aged between 16 and 34, found 53% of young BNPL shoppers want to save money but don’t know where to start.
“Maybuy offers a tangible solution and a savings launchpad to make savings feel a whole lot easier,” said Up head of product Anson Parker.
To highlight BNPL buyer’s remorse in a fun way, Up bank will invite shoppers to drop in to the Maybuy Exchange in Melbourne this Wednesday.
Shoppers will be able to exchange items they impulse-bought for the chance to get back $10 to $500. The items will be donated to a charity partner.
Ben Ice is special features editor of SmartCompany.
