Up Bank has launched a new savings-based feature which encourages customers to save ahead for purchases rather than pay them off.
The new service means customers can now create an automated savings plans for items in their online cart – dubbed a ‘Maybuy’.
Once the savings goal is reached, they’ll be given the opportunity to either purchase the item, or reconsider and keep the money they’ve put aside for something else.
The feature encourages customers to celebrate the excitement of their purchases safely, protecting them from overextension, late fees and buyer’s remorse.
New research by Up found more than half (57%) of Australians aged 16-35 say they would be interested in a savings-based alternative to BNPL.
A quarter of Aussies said buy now pay later has encouraged them to make purchases they regret, with the services evoking feelings of stress (29%) and apprehension (30%).
The research also revealed approximately two in five (39%) young Australians admit they’ve had multiple BNPL purchases active at once.
One in four (26%) conceded they’ve used the services despite feeling worried they may not be able to afford the repayments.
The introduction of Maybuy is set to provide Up customers with an ethical solution to support healthy and considered saving habits.
Up’s Head of Product Anson Parker said the temptation of BNPL services is real – and while they may have their place when well-managed, this new research reveals a strong appetite for a savings-based alternative.
"Maybuy is a fun and easy way to buy things you actually love with money you actually have, meaning there’s no regrets and no debt," Ms Parker said.
"Our research uncovered almost a third (30%) of young Australians found their purchases less enjoyable when paid over multiple installments.
"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."
Currently, there are almost six million buy now pay later accounts in Australia, making up the $11.9 billion that was spent last financial year.
Chief Executive officer of Up Bank Xavier Shay told the Australian Financial Review customers were ‘self-aware’ of how online shopping lured buyers in and embedded unhealthy spending habits.
As a result, customers have requested more tools to help them save and spend in a more controlled way.
Up bank is the country’s highest-rated banking app, obtaining more than 500,000 customers, with 25% younger than 25.
Maybuy is now available to use through Up, across the App Store and Google Play.
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