How does Fupay work?

Customers can borrow money from Fupay in three different ways, depending on the expense they are trying to meet. 

They can pay their utility bills through the Fu Bills feature, which allows them to borrow up to $500. Fupay also offers a tap-and-pay service through its virtual Fu Card that can be used in stores while, for instance, buying groceries, or online. 

The third option is Fu Cash, which is a small cash deposit of up to $200 similar to a payday loan. When you use any of these services, you need to pay a flat borrowing fee equal to 5 per cent of the amount borrowed, which you have to repay in 8 weeks. 

Remember that you should meet Fupay’s lending criteria and share data to prove that you can repay the debt before borrowing money. Also, like other BNPL services, Fupay requires customers to download a mobile app, but you need to link your bank account before you can access any services. 

The Fupay app also gives users access to their online bargain store, Fu Place, and their financial analysis service, Fu Flow. Customers can make purchases on Fu Place and pay using either their Fu Card or another payment method, while they can use Fu Flow to track bill payment deadlines, spending patterns, and manage their finances better. 

Unlike other BNPL services, Fupay focuses on ensuring its customers manage their money, which has both advantages and disadvantages for borrowers. 

Some of the advantages include:

•  You can use Fupay for expenses not traditionally associated with BNPL services, such as rent and food.
•  Fu Flow can help you keep track of payments due and ensures that you understand your borrowing power.
•  You can’t usually borrow large sums of money using Fupay which makes repayment and debt management easier.
•  Fupay doesn’t require you to undergo a credit check before borrowing money, making it easier for younger people without a significant credit history to gain approval.

Some of the disadvantages associated with using Fupay include:

•  Not many merchants may accept Fu Card payments without charging you a borrowing fee.
•  If you need to borrow more than $500, Fupay may not be suitable for you.
•  The number of installments in which you can repay the money borrowed using Fupay varies depending on the amount, and you may have to pay back   the entire sum at once when you make small transactions.
•  You need to be a salaried professional or otherwise receive regular income in your bank account to qualify for borrowing from Fupay.
•  Although Fupay doesn’t conduct a credit check, you need to share all your financial information, including bank transaction data with Fupay to help them assess your borrowing power. Further, Fupay may continue assessing this data over time.
•  Needing to repay money to Fupay will likely count as an outstanding debt when you apply for other kinds of credit like a car loan or home loan.