Update 9/20/21: Blispay has now shut down permanently. Sending this e-mail out:
We are writing to inform you that we will be closing your Blispay account effective immediately.
While this is not the outcome we had wished for, we are thankful for your business and support.
Original post: Blispay is a 2% credit card which also offers financing on purchases $199+ with no fees for 6 months.. They’ve just announced that they are suspending “lending”, but that means you can’t use the card at all. They call it a temporary move, probably due to lack of funds, but this doesn’t look great for the overall viability of the company. Presumably, there are too many free-floaters who take advantage of the 6 month financing and then pay off the balance without incurring fees.
A number of readers sent over this information since Blispay just emailed this out. I guess people like Blispay for the free float or else just as another 2% card for those who maxed out the regular 2% options.
Anyone know if they partnered with a bank and what’s the name of the bank?
I’d like to know if that bank stopped the partnership or if it’s running out of money.
I believe their line of credit is offer by First Electronic Bank.
We are writing to inform you that we will be closing your Blispay account effective immediately.
While this is not the outcome we had wished for, we are thankful for your business and support.
Have you heard any updates about Blispay? It’s been now close to 6 months since they stopped lending, but haven’t heard any updates.
I haven’t heard anything
Does this mean if they go under (bankruptcy I’m assuming), do those with balances still have to pay? And to whom?
I’d expect if they stop collecting payments themselves, they would sell off any delinquent accounts to some debt collector.
There will always be someone to pay. This is retail banking not institutional banking.
Well, I am a free floater who has made payments on time. Reasoning that Blispay has no money because of the floaters is ridiculous, as we as making payments, that is steady cash flow. Blispay also makes money from sellers fees. Its the people who don’t make payment and default create the problems as the company has taken a loss on the 2% cash back all ready and not receiving any additional funds.
Credit card companies all need/expect some portion of their customers to end up paying ~20% interest for there to be enough profits. Not delinquent, just not paid-in-full before interest kicks in. Those are the people who make generous bonuses/rewards possible for those of us who do pay-in-full. If Blispay’s interest-paying customer base was too small, away they go. (And it’s been 4 months now with no un-suspension of operations…)
I think we will see this switch to a EITHER – OR card
Choose 6 months interest free – OR 2% Cash back.
The fed has been raising interest rates. I Expect to see more credit cards to reduce or eliminate their 0% offers in the near future.
“The fed has been raising interest rates….”
As well as continuing to freely print money. Why our economy is in shambles given the fiscal policies engendered by Washington.
The fed prints and contracts the money supply as they see fit.
Currently the monetary base currency is actually declining. At least according to usdebtclock.org
Am hoping that this is just temporary, but I do see how it would be hard for them to make money long term. I have my card basically maxed out all the time and as soon as one promo expires, I start a new one. So am basically just using this card for the free float. I love the concept of the card, but can see how it would be difficult to just give out interest free loans all the time.
Blispay trying to copy RoomiPay and TRU. haha…
thats what happens when you use First Electronic Bank in Utah.
They shouldnt offer that service if they dont intend on you using it, but they do because they know that most people will go in debt and not be able to pay it off in 6 mos. I have used it for 2 yrs now and have always paid it off before the 6 mos so they gave me cash back instead of making money off of me, which they didnt count on people actually doing im sure. Oh well, back to using other cards and paying off monthly.
“…which they didnt count on people actually doing….”
Pretty flimsy business model if they didn’t have a plan for excessive demand for their 6-month-no-interest policy what with how their customer base tends to use available credit. I didn’t find out about BP until last September but once approved their credit plan came in handy for some largish unexpected veterinary bills this month. Yes the balance will be paid off before the 6 months is over yet if their business folds I’ll be disappointed.
Agreed that have not worked out exactly as they have hoped, but with consumer debt on the raise and a few ‘strategic’ temporary suspensions like this one they might be able to sustain until the next crush and profit handsomely from that.
btw. How is this any more attractive than a typical 2% card though?