The FlexiGroup Limited (ASX: FXL) share price is up almost 3% after announcing that humm has launched in New Zealand today.
Humm is a buy now, pay later (BNPL) provider. Though FlexiGroup has a number of products including revolving credit and SME finance. It has a total of 2.2 million customers.
FlexiGroup’s NZ expansion
Flexigroup announced that humm has launched into New Zealand today. It boasted that it’s the only BNPL product in the country to support transactions in store and online up to NZ$10,000.
Humm can provide larger spending power for customers in segments like solar, home furnishing, renovations, luxury retailing, fertility and healthcare.
Oxipay will be replaced by the humm brand. FlexiGroup will migrate its existing customer base and distribution network to humm.
New Zealand retailers joining the existing roster of 2,400 merchants include VIVO, Beaurepaires, The Cosmetic Clinic, MyBed and The Baby Factory.
Existing New Zealand retailers include names like Farmers, Pascoes Group, Freedom, JB Hi-Fi Limited (ASX: JBH) and PB Tech.
FlexiGroup CEO Rebecca James said: “humm was designed with a clearly differentiated proposition of financing larger transactions above NZD1,000. While we are strongly leveraging our eCommerce capabilities, we are also focused on building and solidifying our in-store network for larger purchases, a key strength of humm which is difficult to replicate.
“Our market leadership position in larger transactions over the last 20 years provides unique insights into assessing credit and consumer behaviour. 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.”
Summary
FlexiGroup does not have a huge valuation like other its competitors Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P). Indeed, despite making a statutory net profit of $21.4 million in FY20, it has a smaller market capitalisation than Splitit Ltd (ASX: SPT). Profit isn’t cool, apparently.
If I had to buy one BNPL business it would be FlexiGroup, though if you’re looking for ASX growth shares I would put donation payments business Pushpay Holdings Ltd (ASX: PPH) at the top of my watchlist over any BNPL company.
