New Zealanders keen to utilise buy-now-pay-later services for bulky purchases will soon be able to access interest-free payment terms through humm, with FlexiGroup (ASX: FXL) set to launch their BNPL service across the Tasman.
With other BNPL services offering payment plans for purchases up to $1,000, Flexigroup has carved out it’s unique role in the Australian market by offering access to large purchases – a service the Company has been offering for more than 20 years, well before the establishment of recent BNPL darlings.
“Our customers told us they love BNPL but were frustrated they couldn’t use it for purchases more than NZD $1,000, or extend the payment terms. humm solves that problem,” said FlexiGroup NZ CEO, Chris Lamers.
The larger spending power will enable Kiwis to access bulkier segments such as solar, home furnishing, renovations, luxury retailing, fertility and healthcare through both humm and its growing brand partners.
Having been operating Oxipay in New Zealand for smaller purchases, FlexiGroup will offer humm purchases up to $10,000 at more than 2,400 existing NZ merchant partners which include some of New Zealand’s most-recognised retailers; Farmers, Pascoes Group, Freedom and JB Hi-Fi. Upon launch, all existing Oxipay customers will be migrated to humm.
“Our market leadership position in larger transactions over the last 20 years provides unique insights into assessing credit and consumer behaviour,” said FlexiGroup CEO, Rebecca James.
“This track record gives us the confidence that we can continue to grow in a sustainable and profitable manner as humm expands across the Tasman. With a retail customer base of 2.1 million across Australia and New Zealand, there is also a significant opportunity for retailers with humm.”
At present, FlexiGroup is the only BNPL operator on the ASX which is profitable having reported $21.4m net profit after tax for FY20 from its 2.1 million customers purchasing goods and services from more than 73,000 merchant partners which processed $2.5 billion in transaction volumes.
To better reflect Flexigroup’s position in the BNPL market, the Company will be re-branding as humm in the coming months, having consolidated more than 20 different payment services under the humm brand earlier in the year. Under the re-brand, the proposed new ASX ticker for FXL will be HUM.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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