The Humm Group Ltd (ASX: HUM) share price is up after telling the market that it has reached a new milestone with the healthcare sector.
What happened with Humm today?
Humm revealed that it has extended its buy now, pay later (BNPL) leadership in the health and wellbeing sector.
The BNPL operator said that it has hit $120 million on an annualised basis in the healthcare vertical, with payments rising by 38% in the financial year to date.
Humm now covers 25% of dental chairs in Australia and more than 50% of enterprise audiology.
The company has recently added a range of new partners across dental, pharmacy, audiology, mobility and wellbeing to joint its 3,500 existing health and wellbeing partners.
It announced a range of new partnerships today including Maven Dental Group, CPAP Clinic, Aidacare, Removery and Cosmetique.
Maven Dental adds 106 practices, joining more than 1,100 dental practices across Australia and New Zealand offering Humm to their clients.
Dental and pharmacy are the fastest growing sectors within Humm’s health categories with the pandemic driving pent-up demand for dental services, whilst purchasing behaviour for pharmacy customers has moved online.
What’s driving the strength of this performance?
Humm explained that its ability to finance larger transactions up to $30,000 over terms ranging from five fortnights to five years makes it a clear industry leader in the sector. The average transaction size of over $4,000 demonstrates that Humm is attracting customers that other BNPL providers are not able to service.
Leadership comments
Humm CEO Rebecca James said: “We entered the health market two years ago and have rapidly grown to be the largest BNPL provider in this space, delivering over $120 million on an annualised basis. One in four dental chairs in Australia is now covered by Humm. This is being driven by our exclusive partnership with Centaur’s Dental4Windows software, which has integrated National Dental Plan into its leading quoting software and presents Humm as the exclusive finance solution in over ten thousand treatment plans being offered every year.
“The strong appetite for Humm’s flexible payment terms in these segments gives us great confidence to continue expanding into other target health categories that currently have low penetration of BNPL solutions, including mobility and skincare specialists.”
Summary thoughts
Humm is doing everything right to grow the business. It seems that it doesn’t have the same market excitement as the other BNPL operators – it’s making a profit. I actually think it has a promising future, particularly if it can generate growth into new areas profitably – like healthcare.
Due to the fact that it’s making profit already, it might be my pick of the bunch.
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