Humm NZ sends FlexiGroup (ASX:FXL) share price higher

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.

Expert Analyst Report: 1 ASX Stock for 2020 & Beyond

Want to know the name of 1 of our lead analyst’s top 10 growth stocks?

Enter your email below to receive a 3,500-word analyst report, valuation research note, exclusive CEO interview and more.

It’s completely free. Just enter your email and we’ll send you the report.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Expert Analyst Report: 1 ASX Stock for 2020 & Beyond

Want to know the name of 1 of our lead analyst’s top 10 growth stocks?

Click here to access our free member content, including this 3,500-word analyst report, valuation research note, exclusive CEO interview and more. It’s completely free.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Keep reading: