Flexigroup locks in major retail partners for new Buy Now Pay Later platform to rival Afterpay and Zip Co
Flexigroup’s new Buy Now Pay Later platform Humm is setting itself up as Afterpay’s latest rival, locking in deals with retail giants Myer and Ikea, as well as healthcare groups.
Australian finance provider Flexigroup (ASX: FXL) is giving rivals Afterpay Touch Group (ASX: APT) and Zip Co (ASX: Z1P) a run for their money, unveiling a string of deals for its new Humm Buy Now Pay Later (BNPL) platform.
In an announcement today, the company revealed new partnerships with high-profile retailers including Myer, Ikea, JB Hi-Fi New Zealand, Strandbags and Solomon’s Carpets, as well as health groups National Dental Plan, National Hearing Plan and City Fertility.
According to Flexigroup, these new deals boost total Humm retailers to more 13,000, including both physical locations and e-commerce platforms.
What is Humm?
Flexigroup has been operating in Australia and New Zealand for more than two decades and has been considered Australia’s original BNPL provider before Afterpay and Zip began dominating the market in recent years.
The company has recently consolidated its two legacy platforms Certegy EziPay and OxiPay to make Humm, which it describes as “an innovative and differentiated customer offer which enables shoppers to spend from $1 up to $30,000 completely interest free”.
According to Flexigroup, Humm accounts for a 17% market share of Australia’s BNPL transaction volumes and 40% of receivables.
The company distinguishes itself from its BNPL rivals with the ability to provide finance for both the “little things” and the “big things” under different repayment options.
In contrast, Afterpay has an average transaction value of around $150 and offers credit limits of up to $1,000 per customer with just eight weeks to pay off the balance.
Zip would be a closer competitor to Flexigroup with its two available platforms ZipPay, for transactions under $1,000, and ZipMoney, for purchases between $1,000 and $5,000 (or more than $5,000 subject to further approval processes).
Flexigroup chief executive officer Rebecca James said it was “clear that there is strong demand” for the company’s differentiated proposition.
“These retailers have seen how the Humm platform supports customers in financing their lifestyles when it comes to health, family, home, fashion and more,” she said.
“With Humm, customers can handle the little things worth up to $2,000, repaid over two-and-a-half or five months and the big things worth over $2,000, repaid over six to 60 months, quickly and easily, from the same app – an Australian first,” Ms James added.
Ms James said the addition of these leading brands, announced today, reinforces the strength of Humm’s offering and brings new growth opportunities to retailers.
By midday trade, Flexigroup shares were up 15.56% to $1.56. Meanwhile, Afterpay was down 6.57% to $26.59 and Zip fell 3.43% to $3.38.