NewDay, a leading UK provider of accessible credit, has launched Bip – the first completely cardless consumer credit proposition in the UK. Bip has been designed around the customer, offering a fully digital credit experience that is simple to use, fully transparent on costs and with the customer in complete control.
With no physical card, Bip customers can apply and have access to appropriate credit within minutes. Bip is available via the App Store and Google Play – and can be added to the digital wallet of the user’s mobile phone. Just like a traditional card, it can be used anywhere Mastercard® is accepted when making contactless or online payments.
Bip offers a transparent and seamless customer experience:
- No hidden fees – no annual, foreign exchange or late payment fees. Just one interest rate – typically 29.9% APR.
- Easy application process via the app. If eligible, users can be up and running in minutes. No need to wait for a card and PIN to be despatched by post.
- Paperless (and plastic-less) apart from regulatory required communications – for example letters regarding changes to credit limit.
- The full credit card experience (including secure access to CVV) via the app.
In addition, Bip has been designed to ensure the customer stays in complete control:
- Customers can set two kinds of spending caps to give them control – including a warning and a freeze cap within the app.
- Customers can also set spending alerts to ensure they remain in control.
- Customers can see how much they could save on interest with the Payment Calculator, allowing them to understand the impact on the interest they will pay by increasing their repayments.
- Everything is accessed through the Bip app – including a chat function to help customers service their account.
NewDay has involved its customers in the design of Bip from the start, producing a solution that truly meets their needs, which is evident from customer demand and initial feedback from the testing phase. The firm has successfully recruited a waiting list of over 30,000 customers through the development and testing of Bip. The product is rated ‘Excellent’ on Trustpilot, with a score of 4.5, with customers especially positive on aspects such as the ease of applying, simplicity of use and ability to track and cap spending.
Sharvan Selvam – Commercial Director at NewDay said: “We worked with our customers all the way through the design, testing and launch of Bip. It is a proposition designed to make credit easy to access, simple to use and, importantly, puts the customer in full control.”
Bip will be backed by a full consumer launch including mass market advertising later this year. Bip is the latest product from NewDay – one of the UK’s leading credit providers. NewDay offers credit to a broad spectrum of UK customers, providing accessible credit to close to 5 million people. This includes underserved sections of the market such as existing prime credit customers who may have seen their credit score reduced; and those new to credit who don’t have a full profile with the credit bureaux. At the heart of NewDay is its proprietary technology underpinned by two decades of underwriting experience and intelligence.
NewDay has seen digital wallet and contactless use of its other products more than double in the past year, from around 8% in August 2020 to 20% in June 2021 across customer retail spending. This is in line with wider trends, with 13.7 million people in the UK leading a “cashless life” last year (2020)1 and this accelerating due to the pandemic, and with the UK predicted to be a cashless society by 2026.
Ian Corfield, Chief Commercial Officer at NewDay, added: “We have seen a huge shift in the number of consumers who are swapping their physical wallet for a digital one. Consequently, we believe Bip will have a wide appeal, from early adopters and tech savvy individuals through to more mainstream consumers who are now more comfortable using their digital wallets for payment. This is even more relevant today as changes in spending habits have been dramatically accelerated by the coronavirus pandemic, with cash use falling dramatically from 60% to just 15% of transactions, highlighting our acceleration towards becoming a cashless society.
“Bip is a manifestation of everything we are at NewDay: responsible, transparent and accessible. We want to help our customers – whether they are retailers or consumers – move forward with credit.”