Want to grow wealth as you spend? Douugh aims to help Aussies do just that through its new Pay Now or Pay Later (PNPL) Stockback™ rewards Mastercard. 

Fintech Douugh Ltd (ASX:DOU) has announced the launch of the world’s first Pay Now or Pay Later (PNPL) Stockback™ rewards Mastercard.

Built to help Aussies smoothe their cash flow and grow long term wealth as they spend, the reimagined card solution is designed to challenge and replace traditional bank debit and credit cards in the market, with a built-in proprietary reward offering.

Customers can earn up to 7% Stockback™ when they PNPL, using their DOU card.

Stockback™ is a cashback rewards program, through which the company automatically invests funds into people’s chosen managed portfolio on the DOU platform.

The pay now option allows customers to spend funds from their DOU transaction account.

Customers can also choose to pay later by having DOU ‘Spot’ them up to $500 to smooth their cash flow, repaid in 4 x weekly installments for a flat $1.25 fee per repayment.

DOU said all Spot loans are issued by a third-party lender and funded off balance sheet, keeping in line with its capital-light business model.

The company said it is bringing to market a truly unique value proposition combining banking and investing services to challenge incumbent monoline financial service providers of debit, credit, investing and rewards offerings available in the market today.

In conjunction, DOU is increasing its monthly subscription for unlimited single stock investing from $2.99 to $4.99/28 days.

Developing Douugh Pay for merchants

DOU is also developing a payment gateway solution called Douugh Pay for merchants to offer its proprietary PNPL Stockback™ service to their customers at point of sale, to help increase sales and foster greater customer loyalty.

DOU will handle the end-to-end settlement with the merchant and the Customer.

Stockback™ rewards will be funded directly by the merchant, with DOU charging a processing fee of ~2.0% to the Merchant.

The DOU Pay gateway product is on track to launch in Q2FY24.

The company said the latest version of the DOU App will initially be available to download via invitation only before being made available to all Australians in the coming weeks.

“The majority of Australians are currently feeling stressed about their finances thanks to the steep increase in interest rates to combat rising inflation.

Consumers need a smarter way to spend and grow their money

Founder and CEO Andy Taylor said many Aussies are currently feeling stressed about their finances thanks to the steep increase in interest rates to combat rising inflation.

“The Aussie dream of owning a home is now increasingly out of reach for Gen-Z and many Millennials,” he said.

“On top of this, we are seeing an increase in the use of revolving credit cards to help smooth their cash flow, which increases the likelihood of trapping many people into a spiraling debt cycle due to compounding interest on outstanding balances.”

DOU’s recent Wealth Health Report revealed 9 in 10 worry about their financial situation, with more than 1 in 4 saying they’re not confident about achieving their savings goals.

Additionally, while 86% agree building long term wealth is important, the biggest barriers are the rising cost of living (67%), followed by a lack of savings, unexpected expenses, and living paycheck to paycheck (each 37%).

Taylor said consumers simply need a smarter way to spend and grow their money. He said DOU’s world-first PNPL Stockback™product, designed to help customers grow their money as they spend, is in line with their mission of helping customers build long term wealth on autopilot.

“We are now in position to stand behind a truly unique, mass market value proposition that will disrupt and challenge monoline providers of financial services, supported by a scalable distribution model through merchant partnerships,” he said.

“We believe that Stockback™ will become the critical catalyst to deliver a viral growth coefficient that will allow us to reduce reliance on paid marketing activities.”

This article was developed in collaboration with Douugh, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.