However, all of these reward platforms have one limitation: your rewards don’t have any long-term benefits.
Sure, earning some extra cashback or free gift cards is always nice…but if there was a way for those rewards to grow over time, wouldn’t that be more ideal?
Thankfully, thanks to the Bumped app, it’s now possible to shop and earn free stock from your favorite companies, no strings attached.
If you want to learn about this new and exciting FinTech company, be sure to read our Bumped app review until the end!
Let’s get started with the basics…
Want to start investing on your own while also using Bumped?
Bumped App Review - Quick Facts
Description: Bumped is a free rewards app that lets you earn free stock rewards for shopping at your favorite brands. Shop at stores across 16 shopping categories and get ownership in the companies you purchase from.
Operating System: Android, IOS
Application Category: Rewards Apps
Author: Daniel Friedman
Ease of Use
What is Bumped?
Basically, Bumped is like any rewards program, except you gain stock instead of loyalty points or cashback.
Founded in 2017, Bumped has grown with 2 main goals in mind.
First, everyone deserves to be an owner, whether you’re a beginner or not. Second, your rewards deserve to grow over time.
With a rewards model like this, you’re getting more than just a cashback system.
Now, you might think this is too good to be true. However, the Bumped app is pretty straightforward, and getting started is incredibly easy.
How Do You Earn Free Stocks With Bumped?
From start to finish, Bumped works in a simple 5-step process that doesn’t cost any money or even much of your time.
Time to break down how Bumped works!
1. Sign Up For Bumped
The Bumped app has always been invite-only. You can join the Bumped waitlist on their website to get notified when you can download the app and signup.
However, Bumped announced that they are preparing to launch to the general public as the company continues to grow.
This is incredibly exciting news, and bodes well for the future of Bumped. For now, sadly, you’re stuck relying on the waitlist.
Update: Bumped is now available to everyone so you just need to download the app and signup with your email address to create an account!
Once you create an account, you can then sign up for a Bumped brokerage account.
Bumped Financial LLC is the entity behind your Bumped brokerage account and this is the only way to use the app.
Note that in order to be eligible, you must be at least 18 years old with a U.S. citizenship or permanent residency. You also provide your SSN, name, address, and photo verification to create your brokerage account.
This might sound like a lot of work, and it’s certainly an extra step compared to apps like Drop.
However, if you want to earn free stock, it’s definitely worth it.
2. Link Cards
Once you signup for Bumped, you’re prompted to link a debit or credit card of your choice in order for Bumped to track your spending at eligible brands.
This is the same process apps like Drop use to keep things automatic. Once you link your cards to Bumped, you don’t have to lift a finger to start earning stock rewards.
Here’s how to link your card with Bumped:
- Open the menu.
- Select “Linked Cards.”
- Choose “Link a New Account.”
- Sign into your bank of choice.
- Select the card you want to link.
That’s it! You can link your cards to the Bumped app in just a few minutes.
The same steps apply if you want to link a checking or savings account in order to withdraw your rewards.
You can link as many cards as you like. Bumped has a quick guide on how to link your cards if you need assistance.
3. Earn Bumped Loyalty Rewards
Update: 2021/03/17 – I’m editing our Bumped app review because Bumped has undergone a massive change to how you earn free stocks with the app.
Bumped used to let you pick brand partners from 16 different categories to earn free stock from. You could choose 1 brand per category to earn from.
This included categoies like dining, superstores, telecommunications, and ridesharing apps.
However, Bumped now lets you earn free stock at four companies of your choice through their loyalty rewards program.
These picks work like the old version of Bumped…just pick your companies, shop at them, and earn fractional shares.
Examples of companies you can pick for loyalty rewards include:
- Delta Airlines.
There’s dozens of other options, so don’t fret!
When you shop for the brands that you selected in your account, you earn stock rewards. These rewards take around 2-5 business days to show up after your bank has finalized the purchase.
Most companies pay 1% to 5% cashback in the form of free stocks according to Bumped, although rates are subject to change.
So, if you spend $100 at Walmart, you would earn $1 in free Walmart stock.
This might not sound like much, but when you factor in the 16 categories, you can definitely earn $100-$200 or more per year in free stock just for using the Bumped app.
Plus, Bumped stacks with reward apps like Pei and Drop, and often credit card rewards as well.
This means you can actually recoup a nice portion of your annual spending without having to change your shopping habits.
The percentage of stock you receive is given to you in fractional shares. If the value of the stock changes during the purchase verification period, you still get the same amount of fractional shares no matter what the price is at (lower or higher).
Also note that several Bumped partners pay out through ETFs rather than fractional shares…If anything, this just helps you diversify your portfolio even more!
Once the free stock has arrived in your account, you can see it from your dashboard and view your stock history in the menu.
However, the next major change to the Bumped app has completely revamped what you can do with this app!
4. Shop Online An Earn Free Stocks
The main reason I wanted to update our Bumped review was because of the introduction of the Stock Marketplace.
Simply put, this update is a game-changer for the app.
This new update lets you shop at over 1,000 different stores to earn stock in the form of cashback!
How cool is that!?
Shopping in-store is still the most passive way to earn with the Bumped app.
However, there’s now an in-app shopping portal that’s similar to Drop or Rakuten.
All you have to do is click a brand you want to shop at and Bumped will stil pay you rewards, even if you shop through your smartphone.
Examples of companies in the stock marketplace include:
- Adidas – get 4% cashback in stock.
- Apple – get 1% cashback in stock.
- Chewy – get 2% cashback in stock.
- Costco – get 1% cashback in stock.
- H&M – Get 2% cashback in stock.
- Kohl’s – Get 1% cashback in stock.
- Walmart – Get 1% cashback in stock.
In my opinion, this makes Bumped incredibly versatile and better for users who shop online.
Plus, some offers still let you activate your card and shop in-store, so this is rolling out to both online and in-store purchases.
It’s important to note that previous stock you earned will remain in your portfolio; but this is how the new version of the app works going forwards!
5. Sell Stocks & Cash Out
You can accumulate stock in your Bumped brokerage account if you want your fractional shares to potentially increase in value over time.
However, if you’re looking to sell, Bumped makes it easy to do so.
Here is an easy step-by-step way to sell your stocks once you’ve linked a checking or savings account on the Bumped app:
- Open the menu.
- Select “Portfolio.”
- Choose the stock/ETF you’d like to sell.
- Select “Sell.”
- Confirm Sale.
Done! After a few business days, the sale of your stock/ETF is confirmed and deposits into your “cash balance” on the app.
This cash balance can then be transferred to any linked checking or savings account of your choice.
There are no fees or minimums to sell your stock or transfer the cash balance to your bank, which is another plus for Bumped.
Your earning potential with the Bumped app really depends on 2 main factors:
- If you shop at the partnered brands.
- How often you shop with those brands.
Aside from those 2 factors (which are variable depending on your preferences) let’s take a look at a quick example:
When you make a purchase at an eligible brand with a linked card, you receive a percentage of spending in the form of stock.
These rewards are between 1%-5%, although most stocks tend to lean towards the lower end of the percentages.
Let’s assume that you spend $200 per month on brands such as CVS, Starbucks, and Target. Let’s also use a lower average of 2% as our reward.
With this model, you would earn $4 in stocks for the month.
Are you going to get rich from this?
However, these rewards have the potential to grow unlike most other rewards apps, and this is still $48 is free stock per year without having to do anything.
If you’re the primary spender in your household, there’s really no reason why Bumped can’t earn $100+ per year in free stock rewards.
How Do Dividends Work?
Whenever possible, Bumped will reinvest your dividends for you. The dividend investments are usually put back into the same stock that you received those dividends from.
If Bumped can’t reinvest those dividends for you, they will put it into your cash balance. From there you can move that cash into a checking or savings account at no extra cost.
If you receive a dividend with a value less than $0.01, the dividend will not be shown in your account since the amount is too low.
Keep in mind that you’ll be able to track your dividends history separately from the rest of your investments. There is a label for dividends (labeled “D”) in your history section of the menu.
Note that you can’t buy stocks through the Bumped app. Ultimately, this means you can’t reinvest dividends on your own if Bumped deposits dividend payments as cash.
Is Bumped Really Free? – How Fees Work
Bumped is very straightforward with their fees and charges, and when it comes to fees…there are none!
Using the Bumped app is completely free at the moment. You can see their fee schedule here.
There are absolutely no strings attached. The only things you’ll need to take care of is taxes.
You’re probably wondering…if Bumped doesn’t charge any fees, how does Bumped make money?
Well, Bumped partners with many popular brands in the U.S. which you can invest in. These brands pay Bumped to have their stock and rewards on the app.
There’s really no difference between the Bumped app and other free loyalty programs that pay cashback rewards other than the fact that Bumped pays out with stocks.
Pros and Cons
If you’re on the fence about this rewards app after reading our Bumped app review, here are a few pros and cons to consider to help you understand if this app is worth it:
Some of the benefits of using the Bumped app include:
- Earn easy passive income.
- Real stocks over free gift cards.
- Potential to grow your portfolio.
- Popular brand partnerships.
- No fees.
- Safe and secure transactions.
Before you signup for Bumped, it’s also worth considering some of the downsides:
- Small percentage rewards.
- The app is still in testing.
- Not available outside the U.S.
- Mobile platform only.
Other Apps Like Bumped
Bumped is a unique platform with many differences compared to other investing, reward, and gift card apps.
However, if you want to maximize your earnings and try out even more programs, here are a few apps that are like Bumped:
1. Bits of Stock
Bits of Stock is definitely the most similar app to Bumped.
With Bits of Stock, you shop at popular brands and receive “bits of stock” as a reward for your loyalty.
Like Bumped, your rewards actually have the potential to grow further compared to just earning regular cash back or points.
This is a much newer app and is still in beta testing. Reddit has some mixed reviews for Bits of Stock, but this app is worth keeping an eye on if you like the premise of Bumped.
Acorns is a spare change investing app that helps you get started with investing by rounding up your bills to invest the extra change on your behalf.
For example, if you buy a coffee for $2.50, the Acorns app will round up to $3 and invest that extra $0.50 for you.
Acorns invests in a variety of low-fee ETFs based on your level of risk and portfolio composition. Depending on your plan, Acorns costs $1 or $3 per month.
Recently, Acorns has also added a ‘Found Money’ feature that lets you earn cashback for shopping at more than 300 popular brands.
Spending $12 per year for an app to invest spare change isn’t ideal if you don’t shop a lot, and Acorns basically invests in Vanguard ETFs which you can do on your own.
However, if you’re completely new to investing and don’t know how to start, Acorns can at least get the ball rolling.
3. Dosh, PEI, and Drop
These 3 companies are cashback equivalents of the Bumped app:
- Dosh – A cashback rewards app where you receive cash for shopping as you normally would at hundreds of popular brands. Cash out at $25.
- Pei – Link a card, spend at your favorite places, earn rewards in cash or bitcoin. Checkout our Pei app review to get all the details!
- Drop – A free app that rewards users for shopping at their favorite stores and for buying from partnered brands. Read our Drop app review to learn more!
These apps pay out in cash, free gift cards, or Bitcoin. If you’re just looking for cash rewards, Dosh is probably your best bet.
4. Shopping Browser Extensions
Another easy way to save more money when shopping online is to use money-saving browser extensions.
As mentioned, platforms like Rakuten are an easy way to earn cashback when shopping online.
Rakuten partners with thousands of stores, and once you install the extension, you get notifications if your online purchase is eligible for cashback (so you never miss out).
Rakuten pays out through PayPal every quarter, and there are no strings attached, just like Bumped.
Websites like TopCashback are also decent Bumped app altenatives if you just want to shop online and earn cashback but don’t care if it’s fractional shares or normal cash.
Is Bumped Legit?
Bumped is growing into quite the popular rewards app, despite having a waitlist.
With an average of 4 stars between both app stores and thousands of happy users, the future for this app looks bright.
Additionally, you can find plenty of positive testimonials in Reddit threads like this:
People clearly enjoy the app and love the earning potential that their rewards will have in the future.
I have yet to see any serious complaints aside from the fact that their earnings are still low in the beginning and that there is a waitlist.
At the end of the day, no rewards app is going to transform your finances.
Additionally, if you’re not an avid shopper, apps like Bumped really don’t amount to much over the course of a year.
However, if you find yourself going to Starbucks everyday, taking Ubers around town, and paying a monthly phone bill, the Bumped app could definitely be of use to you!
Plus, you don’t have to shy away from other popular cashback apps, shopping extensions, or credit card rewards. In fact, you should stack as much as you can to maximize the free money you earn.
Bumped is ultimately a refreshing change to the world of reward apps, and it’s awesome that you can earn free stocks just for shopping at retailers you already enjoy.
It doesn’t matter if you’re a novice investor or have been investing for decades; there’s no harm in getting compensated with stocks for being a loyal customer!
I hope you’ve enjoyed our Bumped app review. If you’ve used the app before, let us know about your experiences in the comments!
Note: Capital One Shopping compensates us when you sign up using the links provided.
Daniel is a 20 year old blogger from Los Angeles with a huge love for everything entrepreneurship, finance, and investing. When he’s not blogging at Modern Teen, you can catch him playing volleyball, shooting archery, or finding new ways to make money.