Sezzle Inc (ASX: SZL) and Humm Group Ltd (ASX: HUM) shares are on watch this morning. Both buy-now-pay-later (BNPL) players reported positive progress.
SZL share price
Sezzle signs up Target
Sezzle has entered into a three-year agreement with Target Corporation (NYSE: TGT).
Under this agreement, Sezzle’s product will be used in-store and across Target’s digital platforms. This will provide guests access to interest-free payment plans for purchases.
The BNPL player is on a strong run as this comes on the back of an exclusive partnership with Lamps Plus.
It appears Sezzle is executing its expansion strategy across the US.
HUM share price
Humm launches TAPP
Humm has released its latest technology development called TAPP. It’s a digital card that enables shoppers to tap their digital wallet to make a purchase at any humm merchant in Australia, regardless of the instore point of sale system.
Making a BNPL purchase just got easier and faster.
The BNPL player says this will significantly reduce costs as it normally takes up to three months for BNPL instore integration.
The TAPP payment tech uses the Mastercard (NYSE: MA) network.
TAPP retains the same merchant service fees as other humm transactions, and will only be available at humm merchants.
My thoughts on Sezzle and Humm
There are low barriers to entry within the BNPL space and surveys suggest consumers would likely use multiple BNPL providers.
On top of this, the BNPL sector faces the inevitable removal of the no-surcharge benefit over the long term.
Whilst it’s encouraging to see Sezzle and Humm making progress, there is nothing to stop competitors like Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) from doing the same thing.
This is why I prefer to find businesses that are capable of building a durable and wide moat.
If you’re on the hunt for small-cap ASX shares that have this potential then you may want to check out the Rask Rockets Beyond program.
