In morning trade the FlexiGroup Limited (ASX: FXL) share price has been one of the best performers on the local market.
At the time of writing the financial services company's shares are up 10% to $1.82.
Why is the FlexiGroup share price charging higher?
Investors have been buying the company's shares this morning after it provided an update on its Afterpay Touch Group Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) challenger, humm.
According to the release, the company has added a number of high profile retailers to its buy now pay later platform in recent months. Management believes these additions represent healthy momentum across humm's target verticals of homewares, electrical, health, and home improvement.
A total of 2,000 seller locations were added since May, bringing the total to 15,000 partners.
New retailers on the platform include Temple & Webster Group Ltd (ASX: TPW), Bing Lee, Betta Electrical, Williams Sonoma, Pottery Barn, Jaycar, and 1300 Smiles Limited (ASX: ONT).
FlexiGroup's chief executive officer, Rebecca James, appears to be pleased with the success of its overhaul of the buy now pay later platform.
She said: "Increasing retailer relationships and reinvigorating flexigroup brands are core elements of the business strategy for flexigroup. Key components of the plan also include the right-sizing of the group cost structure, simplifying and modernising IT systems, and marketing – all areas in which increased investment is being made."
Adding: "Our BNPL offering was the first of our suite of products to undergo simplification – merging two little known brands into one compelling proposition. humm's differentiated offering – enabling transactions up to $30,000 completely interest free – is not only resonating with both retailers and consumers, but is also displacing competitors in key categories."
The chief executive officer appears optimistic on the platform's future in the growing market, explaining that retailers "are favouring humm's broader demographic and spending power, helping them drive higher value sales. And shoppers are embracing the ability to make larger lifestyle purchases more affordable by paying in interest free instalments."
