The TAB Flow card gives stock instead of points
The Future. TAB Bank and fintech company Bumped have partnered on a debit card that doesn’t give cash back, airline points, or any other of the usual perks. Like Robinhood’s debit card, it instead gives users stock in the brands they shop. The frictionless fractional-ownership rewards may turn daily investing into a passive experience for those that never felt like they had enough money to get into stock trading.
Fractional by fractional
According to Fast Company, credit card points are getting a retail-trader-inspired upgrade.
- Created in partnership with TAB Bank and Bumped, the TAB Flow debit card will give customers fractional ownership of companies like Walmart, Amazon, McDonald’s, or Chevron whenever you shop at them
- The card has two different tiers:
- Customers using Bumped free tier will get 0.5% in stock back from their purchases.
- Customers using the paid subscription option ($5/month) will get back 1% and have access to more participating retailers.
- Paid-subscription users can also use their card at stores not on the list and still receive stock back from 4 of the 100 participating retailers (evenly distributed to add up to 1%).
- When new customers sign up, they’ll be required to open a checking account with TAB Bank and a brokerage account with Bumped.
Despite launching just last month, the joint venture has already issued 3,000 cards, with most of its customers between the ages of 30 and 40.
The offering is a boon to participating companies. According to a study by Columbia Business School professor Michaela Pagel, once people start investing in a brand, they spend more money on that brand by an average of 40%. Everybody wins.