Forget points, this loyalty program rewards your spending with stocks
Traditionally, there have been three main kinds of rewards you could earn with loyalty programs: cash-back, points/miles or a free item/discount after a certain number of transactions. Generally, these rewards get devalued over time, so it's not good to hoard them.
Well, there is now a loyalty program that's trying to change that.
Enter Bumped. This relatively new program rewards consumers with equity in brands they shop with. The hope is that these investments become more valuable over time. Even better, rewards earned through Bumped are in addition to any rewards you may earn through a retailer's own loyalty program.
Let's take a closer look at how the program works and how you can start earning free stocks.
Bumped Loyalty Rewards
The concept of Bumped is simple. When spending money with certain companies, you can earn a percentage of your purchases back in fractional stock shares.
Participating brands include big names like Starbucks, Netflix, Chipotle and Lyft. Reward rates vary by retailer and whether you're making your purchase in-store or online, but they tend to be around 1 to 2 percent. Plus, they stack with any rewards by a brand's own loyalty program, so you can double-dip your earnings.
Bumped's founder and CEO David Nelsen explained to TPG, "If you're a member of Starbucks' loyalty program, you don't have to sacrifice your stars to earn SBUX stock. The same goes for cards you earn miles or points on — link your favorite and most rewarding cards to Bumped to get stock rewards on top of those other loyalty programs when you spend with your favorite brands."
Related: How to stack Amex Offers for cash back and bonus points
How it works
To get started, you need to create an account (referral link) via Bumped's website or mobile app. Since you're earning real stocks, you'll also be opening a brokerage account when you sign up. As such, you need to provide some more personal information, including your social security number. That said, you'll never be charged any brokerage fees.
You'll then need to link your credit or debit cards and choose the brands you want to earn rewards with. You can pick one brand in each loyalty category. The categories include apparel, club warehouse, coffee, entertainment (streaming services), meal kits, personal care, pet supplies, quick eats, sportswear and transport (gas stations and rideshare apps). You can change your brand loyalty in a category once per 30 days, up to three times a year. After all, the goal of the program is for you to build loyalty with these brands and maintain long-term positions.
Bumped lets you decide whether you want to earn equity in the companies you're transacting with or put those rewards toward your custom portfolio. If you go the custom route, your rewards will be split across Vanguard’s Total Stock Market Index Fund VTI and up to four stocks of your choice. There are over 50 popular stocks across a variety of industries that you can choose from.
Related: Is it possible to invest my points?
According to Bumped, stock rewards typically take up to seven business days to process before they are ordered and settled. You can sell your shares with no fees, though it can take up to three to five business days for the process to complete. Any cash in your account can then be withdrawn. You can't buy more shares through Bumped, though any applicable dividends will automatically be reinvested.
On occasion, users may be asked to complete an action to maintain access to certain features (i.e., earning Loyalty Rewards or access to a new brand). While the program says that this area is still being refined, one requirement could be to make a purchase through the Shop Now section (more on that soon) to continue earning Loyalty Rewards for another three months.
Related: Is earning Bitcoin with each swipe the credit card reward of the future? These cards think so
Shop Now feature
In addition to the automatic stock you earn with your selected brands, you can earn rewards when shopping online with hundreds of stores via the Shop Now feature. It works just like any other online shopping portal, except you're rewarded in stock.
You can search for stores via Bumped's website or app, then need to click through to the retailer's website to complete the purchase. Note, however, that these rewards take much longer to post to your account (60-120 days) and, like other online shopping portals, there may be exclusions for certain transactions (i.e., if you use a promo code from another site).
Related: Your guide to maximizing shopping portals for your online purchases
Bottom line
There haven't been many major innovations in the loyalty space recently, so the addition of stocks as a reward currency is definitely welcome. Unlike points and miles, which are almost certain to lose value over time, stocks have the potential to appreciate. Perhaps most excitingly, you don't need to forgo your usual rewards to earn equity, as Bumped stacks with other loyalty programs. In other words, there's no reason not to join.
"Points, miles, and cash-back can be great, but I wanted to create a reward that could empower people, that could grow over time and could serve the relationship between consumers and the brands they love," Nelsen said. "I can't think of any reward that goes beyond the transaction like ownership does."
TPG featured card
Rewards
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro offer
Annual Fee
Recommended Credit
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.