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A record number of e-commerce and instore integrations have led Flexigroup's (ASX: FXL) buy-now pay-later (BNPL) platform Humm to grow significantly during the fourth quarter.
The payments solution, designed for larger transactions of up to $30,000 in the retail, health and services spaces, saw total transaction growth of 447 per cent on 4Q19.
Flexigroup says the BNPL offering is resonating with a number of new retail partners including Temple & Webster, Amart Furniture, and luxury brand Bally who all recently joined the Humm platform.
As a result, total e-commerce volumes grew by 315 per cent in the quarter.
The growth of Humm in the quarter ending June 2020 has positioned the BNPL platform to diversify its offering further.
Where other BNPL groups are focusing primarily on retail, Humm has been expanding into a variety of spaces like home renovation, dental, optical, and even fertility services all of which can often be quite costly for the average Australian.
This space is where Humm differentiates itself, with customers able to repay transactions of up to $30,000 over a period of 10 weeks to 60 months interest free.
A new strategic partnership with Veterinary Growth Partners will see approximately 170 independent veterinary hospitals have access to Humm.
"This partnership, combined with online pet retailers PETStock and PetPost, ensures that pet owners will have a complete solution with Humm," says Flexigroup, founded initially in 1991 as FlexiRent by Andrew Abercrombie.
"June 2020 saw the company onboard a record number of merchants to both instore and online. New online merchants in 4Q20 increased 54 per cent on 4Q19. Flexigroup's investment in its onboarding process enabled merchants to be integrated and humming online within 48 hours."
Humm now has 56,000 interest free retail partners across Australia and New Zealand as at 4Q20.
The company has also announced that Humm can now be used to pay bills that offer BPAY, enabling customers to use the BNPL solution for electricity, gas and telecommunications bills.
"The continued growth in new retailers joining the Humm platform, particularly in the health and home categories, shows that our differentiated product offering is compelling to merchants," says Flexigroup CEO Rebecca James (pictured).
"With the ability to facilitate larger transactions than other BNPL providers, Humm is continuing to attract a wider range of merchants who previously haven't offered NBPL solutions to their customers.
"With a growing and well diversified merchant base across multiple verticals and a growing awareness of Humm in the market, we are delighted to see our strategy of offering solutions for big and small purchases continuing to deliver."
Shares in Flexigroup are up 2.89 per cent to $1.24 per share at 11:37am AEST.
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