New money management app HyperJar launches in UK – Finextra

In the middle of a debt-based spending bubble and the biggest threat to household financial stability for decades, money management app HyperJar launches today, using a digital version of jam-jar budgeting to give the UK a better relationship with money.

HyperJar research shows that 70 percent of us believe our current accounts don’t help us to budget our everyday money effectively, a fifth (18 percent) need more help with budgeting since Covid-19 and almost a quarter (23 percent) want to build a better financial buffer in future.Against a backdrop of further lockdowns and rising unemployment, the data also shows that one in six feels more nervous about debt, with a third (28 percent) wanting to take more time to think about where and how they spend.

App account holders divide their money in virtual jars according to where they want to spend, on daily expenses like food and petrol or to plan ahead for holidays, weddings or Christmas. App customers can share jars with up to 100 other people, as well as lock-in future spending with HyperJar retail partners[2] for a 4.8 percent Annual Growth Rate[3]. The app, which is intended to complement someone’s main bank account, comes with a prepaid debit card which can be added to Google Pay and Apple Pay.

“There’s been a hostile environment for saving and planning for years, and the gravitational pull of easy credit has never been stronger. A new way for people to budget and spend well is overdue”, says HyperJar’s founder and CEO, Mat Megens.

“The effectiveness of splitting out budgets and naming savings goals is well known, and our early customers tell us that adding a fraction more friction to their spending – taking a bit of time to think about what they want to spend in future – works. Visualising and allocating their money like this gives them clarity, control and confidence.”

HyperJar has three unique features:

Spending from any Jar – Jars function as mini-accounts within the app. Customers can create an unlimited number of Jars and spend from each directly by linking them to the HyperJar payment card from the app. An example is a Food Shopping Jar, from which the account holder can spend every time they buy groceries, whether that’s a few bits from their local corner store or a big weekly shop at Asda.

A ‘WhatsApp for money’ – Jars can be shared with up to 100 people, creating pop-up digital kitties and hassle-free joint accounts that don’t affect credit scores. Sharers join a Jar via Bluetooth, a QR code or a direct invitation in the app. All sharers can pay into the Jar, link their payment cards to spend from it and send each other notes inside the Jar. Everyone sees what, where and when money has been paid in and spent.

Getting paid to plan. Account holders who allocate money ahead of spending with HyperJar partners[2] get an average 4.8% Annual Growth Rate[3] on every penny for up to 12 months, calculated and added to the account daily. This could be to budget and boost everyday spending on fuel with Shell, or to save for a Dyson vacuum. An odometer in the app shows this increased buying power growing in real time. Committed money must be spent with the business it has been committed to – however there is no time limit and it can be shared or sent to other HyperJar customers as risk-free digital gift cards.

A HyperJar account also offers faster payments (instant transfers from banks into the app), real-time spend notifications, card freezing and unfreezing in the app, as well as zero fees on spending abroad or shopping in a foreign currency.

Next month, HyperJar introduces a new pocket money Kids Cards for 6-17-year olds, managed in the adult account. The cards will be free to order for the first 10,000 adult account holders, with zero monthly subscription fees for everyone.

HyperJar’s launch partners are some of the country’s best-known brands, including Shell, Dyson, Boden, Not On The High Street, Bloom & Wild and Virgin Wines. Account holders who choose to commit money ahead of spending get a 4.8 per cent Annual Growth Rate3 on every penny, calculated and added daily. This locked-in money must be spent with the business it is committed to, but there is no time limit and the balance keeps growing for up to 12 months.

The app will soon expand its partner base to include charities, utilities and SMEs, with local pubs, cafes, kids’ centres, speciality food shops and restaurants starting to join the app over the next few months.

HyperJar can be downloaded now from the App Store and Google Play Store. Account holders must be 18+ and a UK resident. All consumer funds deposited with HyperJar are managed in segregated accounts at the Bank of England by Modulr, an e-money institution regulated and authorised by the Financial Conduct Authority.

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