Bumped puts stock in brand loyalty

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Imagine a brand loyalty program, but instead of coupons and other discounts, you’re awarded stock.

Bumped does just that. The app — which began accepting users to join their waitlist a little over a year ago — offers stock, ETFs or other investment rewards for making purchases with your favorite brands.

According to Retire Before Dad, you can expect to see household brands like Spotify, Chipotle and CVS Pharmacy, but options may vary depending on the user.

A breakdown of Bumped

Bumped organizes brands into categories and asks you to select one brand per grouping. Once you spend money at the places you’ve selected, you’re awarded a portion of stock per purchase (between .5 and 5 percent depending on the brand and how much you spend).

There are zero fees associated with the app or rewards you earn and all of the data stored in your account is encrypted and protected under FINRA and SIPC (agencies set up to protect investors).

Note: To use Bumped, you need to be at least 18 years of age and a U.S. citizen or Permanent Resident with an SSN.

How to sign up for Bumped

Sign up requires a bit of personal information (i.e., name, address, SSN), and you may need to provide additional info to confirm your identity (such as a photo of your driver’s license).

By completing the sign-up process, a brokerage account is created for you via Bumped Financial LCC. All stock is deposited into this account, accessible through the Bumped app.

To start spending, link one of your credit or debit cards to the account via Plaid. (Plaid gives developers the ability to connect users’ bank accounts to their app.) You can add additional cards after completing the sign-up process.

The app’s stock-earning process explained

First, Bumped identifies whether or not a transaction is eligible for stock rewards by comparing your purchase to the brands you’ve selected for each category. Once the purchase is identified, Bumped orders the stock and informs you of your earnings.

After the stock is settled, you can view your shares under “Portfolio.” This tab also allows you to view pending stock rewards and offers a 30-day window into stock performance.

You have the option to sell the stock you acquire with a specific brand, but it can only be sold as a whole, not in a specific portion. After a few days, the cash you earn from the sale will appear in your Bumped account and is transferrable to your bank. For now, there’s no option to buy additional stock within the app.

Bottom line

Bumped is currently in beta mode, with users “bumped” to the app in batches. You can jump ahead in line by referring friends and family with a referral link (provided via email after signing up yourself).

As of right now, there’s no information on when the app will exit beta mode and be released to the public. If you’re interested in signing up for the waitlist, you can do so here.