Blispay is a new startup founded by Greg Lisiewski, formerly of BillMeLater, which was acquired by PayPal for nearly $1 billion in 2008. The Baltimore-based company received $12.75 million in seed funding last week.
Here’s how it works. Blispay signs on with merchants to offer financing programs that are free for the merchants and require no extra time or energy from the retail associates. These merchants simply hang signage that explains to customers that a financing plan is available to them. They target small and medium-sized merchants that have no way to give their customers the same kind of financing plans that big-box retailers do.
Apply on your Phone, Pay with Blispay Immediately
When a customer walks into the store and either can’t, or doesn’t wish to, pay for the item in full on the spot, they can sign up for Blispay on their phone. The sign up includes a few minutes of fine-print reading and asks the user to include their name, email, password, phone number, address, DOB and Social Security number. If approved, you get a virtual card that you can use right away and also a physical Blispay Visa card in the mail in a few days. They will do a pull on Experian.
But Blispay isn’t connected to any merchants so it’s also a credit card on its own, so you can just fill out an application directly on their website. You can use Blispay everywhere Visa cards are accepted. It is a store card and a credit card combined in one.
2% Cash Back Automatically
With Blispay you get 2% Cash Back on all purchases with no limit. There’s other 2% cash back cards out there, but with Blispay you get the earned cash back through an automatic statement credit each statement period, with no minimum redemption requirement. This makes the Blispay Visa card a great everyday card.
6 Month Special Financing on all purchases over $199
Blispay also has a very interesting 6-month financing option that can be lucrative if you have a high credit limit. They gives you “No Payments No Interest” on all purchases over $199 if paid in full in 6 months. Interest will be charged to your account at your APR of 19.99% from the posting date if the purchase balance is not paid in full in six months. Your account has a minimum interest charge of $2.00.
The 19.99 percent interest rate is relatively lower than the average 26 percent for other financing programs from big box retailers, but slightly higher than a traditional credit card (average 17 percent interest). But you shouldn’t be worried about the interest rate too much as you should always pay in full before the 6-month period is over.
If you forget to pay the promotion off by the expiration date, you can make a payment during the extra time between the expiration date and the next payment due date. For example, if you have a promotion with an expiration date of June 5 and your payment due date is June 15, you will have until June 15 to pay off your promotion without being charged the accrued interest.
Unlike the 2% cash back, this 6-month Special Financing is a promotional offer, so Blispay may change this in the future. Read their FAQ for more details.
Update: They have now released their iOS and Android apps as well. It’s a nice and clean looking app that shows all necessary info right on your phone, along with your virtual card.