Banks and financial institutions closely watch the BNPL space. Some even come up with alternative solutions as the popular concept has begun losing traction. Up Bank, the Aussie neobank, has a new savings service dubbed Maybuy.
Up Bank Goes Beyond BNPL
It is good to see banks acknowledge BNPL may have run its course, for now. Although the concept has proven popular during the COVID-19 pandemic, people have relied on BNPL less and less. That has caused some issues for companies solely relying on providing that service, forcing them to lay off staff or raise additional money at a lower valuation.
Australian neobank Up Bank wants to provide an alternative solution, dubbed Maybuy. The service offers an automated savings plan when users look at items to buy online. Once the customer reaches their predetermined goal, they can then opt to buy the item or save the money for another purpose. Maybuy will help consumers become more aware of their spending habits and how they could use the money for more pressing needs.
Up Bank Head of Product Anson Parker adds:
“Our research uncovered almost a third (30%) of young Australians found their purchases less enjoyable when paid over multiple instalments. So, we want to give people more time to make decisions about what they buy, which in turn we hope will lead to increased purchase satisfaction and better financial outcomes.It also found over half (53%) of BNPL users want to save money, but don’t know where to start. Maybuy offers a tangible solution and a savings launch pad to make saving feel a whole lot easier.”
Accompanying the new service launch is a pop-up store in Melbourne featuring an “Anti-Impulse Machine”. Users can trade in purchases and save money instead, serving as an educational and insightful tool. Ultimately, Up Bank hopes to make more Aussies buy things they love with the money they have to spend. Of course, thwarting impulse buying is an ambitious goal, but the effort deserves to be applauded.