BNPL start-up Fupay announces expansion into grocery and fuel

Fupay has partnered with Foodworks, IGA Marketplace, and United Petroleum in its expansion into the grocery and fuel sectors.

The Australian fintech start-up will work with the new merchant partners to provide consumers with a Buy-Now-Pay-Later (BNPL) option that provides cash back rewards and shortly switch-and-save options based on personalised spending habits.

Michael Fredericks, Founder and Managing Director of Fupay, said historically Australian merchants have exclusively offered customers credit card payment options to meet their short-term credit needs.

“The younger generations continue to turn away from the open ended ‘debt trap’ associated with credit cards, and now all merchants are realising the need to meet this growing shift.

“With traditional BNPL credit designed to increase retail merchant sales, with no affordability checks, the offering doesn’t work for everyday spending categories which may have lower margins, no discretionary up-sell agendas for fixed expenses such as rental payments; not to mention the hesitancy around responsibility concerns with some products.”

Fredericks said Fupay is the responsible solution with a holistic money management solution and that their services offer a safe avenue for these businesses to enter the new world of payment smoothing to meet the needs of the next generation, whilst empowering their customers with a smarter way to manage and spend their money.

Benefits to merchants include the ability to provide the platform’s features under their brand to their customers as a customisable white label solution (B2B2C) and partnerships with Fupay enable everyday spend merchants to provide short-term payment smoothing options and targeted promotional offers and rewards to customers.

Judith Russell, Chief Operating Officer of United Petroleum, said they are excited to be one the pioneers in offering responsible payment smoothing services in the fuel industry across 350 plus United service stations nationwide.

“Partnering with Fupay not only opens up flexible payment options for our customers but provides a four cents per litre fuel discount which helps towards managing their financial wellness.”

Raelene Hooper, Director of Marketing, Partnerships and Sales at IGA Marketplace, said Fupay’s vision to be Australia’s first responsible spending and lending app was the key driver for the partnership.

“Fupay offers a low fee structure to our customers, with a commitment to responsible lending, enabling them to enjoy fresh, high-quality food when managing their cash flow issues. We always want to ensure our customers are at the forefront of everything we do and we are confident they too will appreciate the way Fupay does business across all retail locations.”

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