Who thinks this account will actually report to the CB's? I mean the people who started this worked for Bill Me Later, and that's a HTL...I'm betting it'll be hidden and that would be sweet!
@CreditCuriousity wrote:The 12.5 million seed money is what scares me.. That is very little money. As from the article they buy back the loan from the bank in a few days time, how much can they buy with 12.5 million? So it appears the middle man bank has 0 risk or so it seems on how the article was written. Granted I am sure there is most likely alot more to come possibly. Just seems ripe to fail and ready to be abused. I just don't see how they can do 2% and 6 months of 0% financing other than people that carry balances possibly offsetting it.. If Citi can barely make it work by doing 1% and 1% and fidelity being the only other 2% visa's/MC's out there what makes this tiny company any different. What am I missing?
Personally I don't see how the business model will work out.
Ultimately all the financial risk is on the shoulders of Blispay, which is a tiny company by financial institution standards.
It will wind up with a portfolio of
(a) loans which pay no interest (from the low-risk financing customers who do have the money to pay back within 6 months) and
(b) loans which pay high interest (from the high-risk financing customers who do not have the money to pay back within 6 months, and are powerless to wind up paying 20% APR)
I mean if they follow the same principle as bill me later, then it would be right. I'm glad I got a $7,500 sl. 
@CreditCuriousity wrote:The 12.5 million seed money is what scares me.. That is very little money. As from the article they buy back the loan from the bank in a few days time, how much can they buy with 12.5 million? So it appears the middle man bank has 0 risk or so it seems on how the article was written. Granted I am sure there is most likely alot more to come possibly. Just seems ripe to fail and ready to be abused. I just don't see how they can do 2% and 6 months of 0% financing other than people that carry balances possibly offsetting it.. If Citi can barely make it work by doing 1% and 1% and fidelity being the only other 2% visa's/MC's out there what makes this tiny company any different. What am I missing?
I think you're 100% right.
Maybe they can 'make it up on the volume'
It will probably stay alive for awhile based on the pyramiding effect of new customers, new merchants, and new investors, but with this business model it seems that Blispay would wind up going under some day.
@kdm31091 wrote:Personally I could see this going the way of many previous "flavor of the month" cards from previously unheard of lenders. I hope we don't have a bunch of "Blispay closed my account!" in a month or two.
Agreed, except would substitute "a year or two", because the flaws in this plan won't start to reveal themselves until 7 months down the road, when the high-risk loans start defaulting.
QUACK QUACK 
@kdm31091 wrote:
@fltireguy wrote:
@kdm31091 wrote:
@redpat wrote:The approval board is lit up like a Christmas tree with Blispay approvals.
The sheep are a following.......lol.
I saw that and I guess I really don't understand it. It's just another 2% card that's less flexible in what you do with the rewards. Financing is nice, but many issuers will offer you a 0% period if you call and ask on your existing cards. Meh.
If you don't already have a 2% card, sure, it's not bad, but for those who already have a DC or Fidelity (or both even!) it seems superfluous..
How do you figure that its less flexible? Its a statement credit, so wouldnt that be the most flexible, especially since it automatically redeems?
@Anonymous, with the 6 months @0% on all purchases over $199, that is far easier than calling your card issuer and spinning the wheel of fortune....
By less flexible, I mean that you can't save up the rewards. They redeem whether you want them to or not. What's the advantage over something like a Fidelity or DC where you can do what you want with the rewards, when you want?
Yes, the 0% is nice, but debateable whether that's worth a brand new app. I guess to many people, it is!
But for a cash back minded person, its more flexible. IE, you don't have to save up the cash back until you have $25 or $50 acumulated before you can cash out. And when you inevitably close the card sometime in the (distant) future, you don't lose any accumulated points that you can't cash out, etc.
You earn cash back, and every cent of that cash back is given to you on a statement credit, all without any effort on your part. It doesn't sound like a bad deal...
