Hot off the presses!  There is a new investing application for your smartphone in town and this is set to change the investing game, BIG TIME.  I am not talking about just for those that already invest but I am talking about those who believe there is too much work, stress and lack of understanding to invest.  Please continue reading to see what application is going to CHANGE THE GAME!

What is Bumped?

The Bumped application, in it’s purest form, rewards you with free fractional shares of stock when you spend your money on their goods and services.  How is this possible?  Once you link your card to the application and use that card to purchase an item, you’ll earn a percentage back onto the brokerage account you have through Bumped, in the form of a fractional share.  Here is an easy example: You spend $100 on your Target (TGT) run with your Visa credit card.  Currently, Target allows you to receive 1% cash back on the Bumped App.  After your purchase, you are rewarded with $1.00 of stock for Target.  At this moment, they are in Beta mode and have thousands of individuals using the application.  I currently am on the waiting list and if you sign up using my link, I’ll get “bumped” up in line, to use the service.  From their blog post, they want to bring in waves of new users, to ensure the functionality is as precise as possible.

The big question, which they explain in their videos and page, is, “will this impact my cash back and rewards from my current credit card?”.  The answer, in short, is, “No”.  Therefore, you can continue earning your normal rewards with your credit card, only this time, you also are earning shares of stock, in return.

The next question is, “Why would they offer even more back on a purchase?”.  These days, retailers especially, companies are having a very difficult time retaining loyal customers.  Therefore, one may be more inclined to continue to go to the same place of business and/or use the service from the same company.  Another example could be Papa Johns (PZZA).  Say there is a Dominoes (DPZ) next door and then there is a Papa Johns just a little bit further.  However, you’ve enjoyed Papa more and has a 5% kick back of stock for your purchase, but Dominoes is just more convenient and only offers 1% of a kick back in the form of stock.  Wouldn’t you be more inclined to go a little further, go to the pizza place that you like and get more of a kick-back?  That’s an easy decision for me and would increase my brand loyalty versus choosing the closest pizza place or one that may be slightly cheaper.

How does it work?  That is a question that most have asked me, as well.  You have “Loyalty Selections” for categories, such as, coffee, pizza, grocery stores, entertainment, cable/internet and the like.  Then, you have to select one company that you will choose to be your pick in that category (as there is typically 2-5 companies per category, example: Starbucks or Dunkin for coffee).  The catch is you cannot change at each purchase point.  In fact, I believe you can only change your pick every 30 days and only change it 3 times per year, therefore, you must choose wisely.  This creates that loyalty impact for the consumer (us) and the company.  It is that easy.  That way, you will be incentivized to continue using your pick in that category, due to the limitations on switching your pick.

(photo credit to Bumped App Instagram page)

The Pros – Initially

• Allows all individuals whom have access to a credit card, to begin investing, immediately.
• Adds an additional way to build an investment portfolio.
• Reduces, in a way, the overall “cost” of a purchase being made.  Reason being, not only are you receiving your normal credit card reward, but also you are receiving stock back, which may/may not produce future dividends, as well.
• No annual fees and, as of now, not sure if there are trading fees.
• Bumped’s brokerage platform will have free dividend reinvestment.
• Bumped allows you to reach financial freedom, faster, obviously!

The Cons – Initially

• The wait list.  I have been on the wait list for over 5 weeks and still have yet to officially start using Bumped.  As stated earlier, the more referrals you have that join, bumps you higher on their list for the next phase of new members.  I have referred over 14+ individuals, but not officially in quite yet.
• Another application/brokerage to monitor.  Yes, this adds another area to review your investments, which may be a con for those that want simplicity and minimal accounts.
• Data security & privacy.  Since you are linking your card to your account, this allows the organization to have access to what you spend your money on, thus allowing them access to data and potential to share that data with other parties.
• Your brand or company may not be on the Bumped App initially.  Since this is in the early stages, not as many companies have signed up for the service.  Therefore, depending on your area or frequent places visited – this may not benefit you.

How Do I Sign Up?

Now, if you’d like to sign up, I would incredible ecstatic if you used my Bumped App Link, in order to bump me up to the next phase in.  It’s fairly easy – input your e-mail and you will, during this beta phase, be added to their wait list.  Next, all you need to do is SPREAD THE WORD!  That way, you can start using the application earlier AND I strong believe with more individuals signed up, that show they “WANT” to use this application, the more footing this company will have.  If we are able to have the masses start signing up, logging in, using this application – their bargaining chip with companies will persevere and this will allow them to reach better and more spread deals to other companies that they are currently not affiliated with.

Current Status & Conclusion

Therefore, as of December 22nd, I am on the waiting list for Bumped!  I whole heartedly believe, if this app starts to spread, this will change the investing game for everyone in the U.S.. As long as each person has the app and has a card linked to their account, they are now building assets, even if it is just $1.00 at a time.  This doesn’t come to a surprise, but you know we preach to make every dollar count and this app offers nothing less than that.

Bumped did not pay for me to write this and this article is written out of my own passion & excitement.  I hope you do sign up and want to partake in the Bumped experience!  What are you waiting for?  Let’s get this out to as many people as possible, so that we can all be in a better place financially, automatically and work together!  Please let me know if there are any questions and please comment below!