The company’s chief executive, Xavier Shay, said the anti-buy now, pay later feature, called Maybuy, would encourage customers to save before large purchases, rather than having them pay them off later.
“We kind of see Maybuy as an anti-buy now, pay later,” he said.
May buy will create an automated savings plan for users looking to purchase items online.
Upon reaching their goal, consumers receive a notification letting them know that they have the money to buy the item – if they still want it.
It’s a system older Australians know well, saving up bit by bit before buying something.
The new, wacky and innovative technology on display for 2022
“I remember that feeling, as a kid, of there being that new video game that I wanted and saving up my coins and going to Target every week,” Shay said.
“It’s not just getting the thing you want, it’s feeling good about ‘hey I’m actually in control of this’.”
It’s also a way to take on the big four banks and the likes of Afterpay.
Up is fully owned by Bendigo and Adelaide Bank, which hope to claim a bigger market share.
Canstar editor-at-large Effie Zahos said the feature was “very clever.”
“It puts the responsibility back into buying,” she said.
“Essentially they’re looking for new customers. Ideally they want you to have this as your main transaction account and then have your savings accounts off that.”
It’s estimated that as many as a third of adult Australians have a buy now, pay later account, but with costs on the rise, the idea of ”save now, buy later” could be making a comeback.
“I think the challenge for this product is convincing consumers there’s nothing wrong with doing things the old-fashioned way,” Zahos said.