The FlexiGroup Limited (ASX: FXL) share price will be one to watch on Monday after it provided an update on its buy now pay later offering.
What did FlexiGroup announce?
This morning FlexiGroup announced what it believes will be the next advancement in consumer finance, a world first buy now pay later product that can be used everywhere – bundll.
According to the release, bundll represents a completely new category in the buy now pay later sector with transactions not being limited by merchant integration.
In a strategic partnership with payments giant Mastercard, FlexiGroup has created a product that will allow customers to "Buy EVERYWHERE and Pay Later."
The bundll product expands the buy now pay later spend for everyday items, with interest free purchases in categories normally reserved for debit card spend such as petrol and groceries.
Using the Mastercard network, bundll customers can shop wherever they like, online and in store, with no minimum spend.
Furthermore, bundll is the only buy now pay later product that can facilitate multiple payments up to $1,000 at any merchant that accepts Mastercard transactions. Management believes this supports customers with their everyday spending.
All weekly purchases get bundled into one place, with consumers getting no less than two weeks to pay their bundll. They can even use an accumulated "snooze" to delay payment further.
FlexiGroup's chief executive officer, Rebecca James, said: "We know that our millennial customers prefer debit to credit, like to budget and don't want to pay interest. While under-35s represent only 23% of credit cardholders, they speak for over 48% of Buy Now Pay Later users. Furthermore, debit cards surpassed credit cards as a preferred payment method for under-35s during 2019."
"Flexigroup is proud to be launching bundll in Australia as a world first. It's Buy Now Pay Later in your pocket and it gives you complete control over where you shop, when you pay and how you budget – all from the convenience of your mobile phone."
The product is also being co-branded and made available to RAIZ Invest Ltd (ASX: RZI) customers. The two companies have a strategic relationship which allows Raiz users to fund purchases on bundll by facilitating instant liquidity in their Raiz accounts.
In other news.
It isn't just FlexiGroup announcing things today. The Sezzle Inc (ASX: SZL) share price could be on the move after it revealed that it has surpassed one million active customers on its buy now pay later platform.
