The new spending and rewards card is designed to help customers ‘smooth’ their cash flow whilst growing their wealth as they spend. Douugh is bringing to market a new value proposition combining banking and investing services to challenge incumbent monoline financial service providers of debit, credit, investing, and rewards offerings.
Through a single card offering, customers can earn up to 7% Stockback on everyday spend. Cashback rewards that are automatically invested into their chosen managed portfolio on the Douugh platform.
The Pay Now option allows customers to spend funds from their Douugh transaction account. Customers can also choose to Pay Later by having Douugh ‘Spot’ their funds to smooth their cash flow, splitting purchases into 4 weekly instalments for a flat USD 0.85 fee per repayment, with no interest or hidden fees.
The Pay Later feature will quickly be expanded to help customers fund bigger purchases over a longer period of time. These micro loans are funded off balance sheet and issued by a third-party lender, allowing Douugh to maintain its ‘capital-lite’ operation.
Stockback is Douugh’s proprietary rewards offering designed to be the growth catalyst for the acceleration of Douugh’s investment proposition. Customers earn ‘free money’ as they spend and become investors, establishing good money behaviours, thereby encouraging them to commit to a recurring investment using their own money, which Douugh monetises through a monthly subscription.
Central to Douugh’s scale up plan is the launch of Douugh Pay. A payment gateway solution for merchants to process payments that will be automatically debited from a customer's Douugh transactional account.
Online Merchants will be able to offer their customers Douugh’s unique Stockback reward programme, with the flexibility of Pay Now or Pay Later features integrated into a seamless checkout experience at the point of sale. Douugh will handle the end to end settlement with the merchant and the customer. Stockback rewards will be funded directly by the Merchant, with Douugh charging a processing fee of ~2.0% to the Merchant. The Douugh Pay gateway product is on track to launch in Q2 of 2024.
Officials from Douugh said the majority of Australians 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. On top of this, they 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 spiralling debt cycle due to compounding interest on outstanding balances.
The new Douugh App is available to download via Apple’s Testflight and the Google Play store in beta testing mode, accessible initially on an invitation only basis until being made available to all Australians in the near future once the necessary regulatory and issuer approvals have been obtained.
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