One of the best performers on the All Ordinaries index this week has been the FlexiGroup Limited (ASX: FXL) share price.
Earlier today the diversified financial services company's shares surged over 17% higher to $1.97.
When its shares reached that level, it meant they had gained a remarkable 43% since the start of the week.
Why has the FlexiGroup share price been on fire this week?
Investors have been fighting to get hold of the company's shares this week after it released an update on the progress of its buy now, pay later (BNPL) platform, humm.
According to its update, the Afterpay Touch Group Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) rival has been making great progress and has attracted a number of major retailers to its platform.
Some of the businesses added to the platform recently include City Fertility, IKEA, JB Hi-Fi Limited (ASX: JBH) New Zealand, Myer Holdings Ltd (ASX: MYR), National Dental Plan, National Hearing, Solomon's Carpets, and Strandbags.
I think IKEA is a major coup for the company and, along with JB Hi-Fi New Zealand and Myer, is likely to have got investors excited.
The addition of these retailers to its network could result in a major boost to underlying sales, which at the last update accounted for 17% of BNPL transaction volume in Australia (and 40% of receivables).
It is also likely to result in an increase in customers. According to the release, over 1 million customers are shopping at more than 13,000 seller locations and e-commerce platforms in Australia. Whereas in New Zealand the company has over 160,000 BNPL customers who can shop at over 1,700 seller locations.
Should you invest?
I've been very impressed with humm's progress and feel it makes FlexiGroup an attractive option for investors, especially with its shares changing hands at just 9x estimated forward earnings.
This could make it a budget way for investors to gain exposure to the rapidly growing BNPL market.
