The FlexiGroup Limited (ASX: FXL) share price is up 11.7% in early reaction to its latest humm retailer update.
FlexiGroup offers a range of financing options for consumers and businesses through a network of retail and business partners. It has buy now, pay later options called Humm, credit cards and consumer & business leasing. It’s been operating in Australia for more than three decades and serves 1.2 million customers.
FlexiGroup’s Humm Update
FlexiGroup announced that it has added a number of high profile retailers to its buy now, pay later Humm platform.
In retail it has added Hanes Australasia (Bonds, Bras N Things), KOOKAI, ISHKA, Hallenstein Glasson, Zanui, JPG, Bevilles, Oxford, Ozsale.com.au, Dealsdirect.com.au, Surfstich and Novo.
In home improvements it’s added Mitre 10, Home Timber & Hardware, RedEarth Energy Storage and Aussie Farms Group.
In the health sectors it’s added Hearing Choices, Smile Solutions, Core Dental, Smiles Group and Baxter Blue.
FlexiGroup said that in the first two months of FY20, volume growth across its key verticals was up 85% on the first two months of FY19.
The company also said that Humm continues to see good customer and retailer growth with the total number of retail partners climbing to 18,000. Total transactions to date in FY20 on the Humm platform were up 25% year on year, driven by the growth of ‘Little Things’ purchases (being transactions up to $2,000, repaid over 10 to 20 weeks), which grew by 67%.
FlexiGroup CEO Rebecca James had plenty of positive words about the progress of Humm:
“I’m delighted to welcome a wide range of iconic Australian retailers to the humm platform as our retail partners and customer numbers continue to grow. These retailers have been attracted to Humm’s differentiated product offering- servicing a wider breadth of transactions and offering greater repayment terms to their customers.
“By continuing to focus on our key verticals we have experienced exceptional volume growth, driven by triple figure growth in both the health and retail verticals.”
FlexiGroup’s Humm is certainly getting a lot of traction, and the company may even be better value than some BNPL competitors, but there’s so much competition in the space I’d rather buy the shares of the rapidly-growing businesses in the below free report.
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