NewDay launches digital-only credit card 'Bip'

NewDay, a leading UK provider of accessible credit, has launched Bip – the first completely cardless consumer credit proposition in the UK.

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.
 

What does Bip offer?

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.

A customer-first solution 

NewDay has involved its customers in the design of Bip from the start, producing a solution that truly meets their needs. The firm has successfully recruited a waiting list of over 30,000 customers through the development and testing of Bip. 

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.”

Shifting to digital wallets

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. 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. 

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.”