US Bank Launches Debit Card with Stock Rewards

Published 26 August 2022

2 min read

A new debit card from Tab bank and fintech company Bumped (both US) aims to democratise financial access. It acts as an alternative to credit cards, but requires no checks or history to obtain, and offers stock as rewards. It’s a model that echoes themes from Fuelling Financial Inclusivity and acknowledges the need for improved access to banking.

Launched this August, Tab’s debit card offers both free and paid tiers. Users who choose the no-fee option earn 0.5% of stock when they shop from major US retailers like Amazon, Walmart and Starbucks. Meanwhile, the $5-a-month subscription option gives consumers 1% stock back on each purchase at a wider roster of brands (including Uber, Target and AT&T). When shopping at a company not included in Tab’s reward scheme, subscribers will earn 1% as an investment in an ETF (exchange-traded fund).

According to Bumped’s chief marketing officer Amy Dunn, the card is designed for people who want to invest but feel overwhelmed by their options, including the 42% of Americans (overwhelmingly BIPOC and low-income) who haven’t put money into the stock market (Gallup, 2022). A companion app further demystifies investing, with bite-sized lessons in common terms like dividends or fractional shares.

To ensure it doesn’t only attract people who have already invested in stocks, Tab is working with local influencers to promote the card to cohorts who have historically less exposure to the market.

With gaps between the wealthy and poor widening alongside inflation, schemes that democratise access to financial education and markets are becoming increasingly crucial. While these projects are ultimately a band-aid for larger systemic issues, it’s important that there are more ways for people to gain exposure to – and knowledge of – wealth-building strategies.

 

Get in touch so a member of the Stylus team can explain how your business can harness the power of trends and insights like these – and more.

Launched this August, Tab’s debit card offers both free and paid tiers. Users who choose the no-fee option earn 0.5% of stock when they shop from major US retailers like Amazon, Walmart and Starbucks. Meanwhile, the $5-a-month subscription option gives consumers 1% stock back on each purchase at a wider roster of brands (including Uber, Target and AT&T). When shopping at a company not included in Tab’s reward scheme, subscribers will earn 1% as an investment in an ETF (exchange-traded fund).

According to Bumped’s chief marketing officer Amy Dunn, the card is designed for people who want to invest but feel overwhelmed by their options, including the 42% of Americans (overwhelmingly BIPOC and low-income) who haven’t put money into the stock market (Gallup, 2022). A companion app further demystifies investing, with bite-sized lessons in common terms like dividends or fractional shares.

To ensure it doesn’t only attract people who have already invested in stocks, Tab is working with local influencers to promote the card to cohorts who have historically less exposure to the market.

With gaps between the wealthy and poor widening alongside inflation, schemes that democratise access to financial education and markets are becoming increasingly crucial. While these projects are ultimately a band-aid for larger systemic issues, it’s important that there are more ways for people to gain exposure to – and knowledge of – wealth-building strategies.

 

Get in touch so a member of the Stylus team can explain how your business can harness the power of trends and insights like these – and more.