A new buy now, pay later service named Bundll has launched in Australia
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Australians have a new means to pay for their groceries weeks after they bought them.
In an unprecedented move, financial services company Flexigroup has revealed its buy now, pay later (BNPL) service Bundll will allow Australians to delay repayments on all purchases made with their Mastercard.
“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,” CEO Rebecca James said in a statement issued to Business Insider Australia.
The partnered service will allow Australians to use their ordinary Mastercard to purchase everyday items, like petrol or groceries, at any Australian or global business, and then have two weeks to repay the amount interest-free.
According to Flexigroup, the service will be available on all purchases up to $1,000 and available no matter whether used in-store or online.
While buy now, pay later companies in Australia were once constrained to fast fashion sellers, the integration demonstrates the crowded field has an eye on growing ever larger.
They’ll have to, as Afterpay, Zip, Flexigroup-owned Bundll and Humm, Splitit, OpenPay, Sendle and others all joust for customers.
The move by Bundll comes just weeks after European giant Klarna entered the market, allowing customers to buy from any retailer interest-free via its app.
Klarna’s emergence will perhaps come as the biggest worry to Australian companies which will now likely need to expand their own capabilities to keep up.
It marks not only the next battle line on which BNPL companies will fight but also perhaps a changing relationship with global card companies.
New York University (NYU) professor and corporate soothsayer Scott Galloway prophesied Visa and Mastercard would be the undoing of Afterpay and others, leveraging their ample resources and established networks to simply move in and take over the BNPL market.
Afterpay and its ilk, Galloway reasoned, don’t have any substantial ‘moats’ – such as unique technology, patents, or unassaiable market power – to successfully see off challenges from bigger players.
Whether or not that comes to pass is another matter – Zip for one has rebuffed the argument.
Mastercard’s willingness to be integrated with Bundll perhaps signals card companies and others are more willing to bet and back certain companies rather than directly compete.
Given the speed at which the BNPL sector has both been created and grown, this new status quo – if that’s what it is – could just as quickly change.