The Flexigroup Limited (ASX: FXL) share price has been relatively stagnant today, despite an announcement about the launch of its 'humm' product in the New Zealand market.
The Flexigroup share price reached an intra-day high of $1.12 before closing at $1.09, up 0.9% for the day.
What does Flexigroup do?
Flexigroup is a diversified financial services group. It provides a range of innovative finance products to consumers and businesses through a large partner network. The buy now, pay later (BNPL) company currently services 2.2 million customers.
Humm landing in New Zealand
Flexigroup advised the market it has launched its humm product in New Zealand, following the success of its BNPL brand Oxipay. Through humm, the BNPL company is the first to offer terms of up to NZ$10,000 and is targeting new market segments.
The larger transactions are expected to help Kiwis with purchases such as solar, home furnishing, renovations, luxury retailing, fertility and healthcare. Flexigroup advised that retailers such as VIVO, The Cosmetic Clinic, Insulmax, MyBed, Beaurepaires and others will join the 2,400 businesses that are on the existing roster.
The launch of humm replaces Oxipay as Flexgroup's BNPL brand in New Zealand. The company will migrate its existing customer database and distribution network to humm.
As the company seeks to unify all products, a name change will be put to a shareholder vote at the FY20 annual general meeting later this year.
Management commentary
Flexigroup New Zealand CEO and deputy group CEO Chris Lamers was enthusiastic about the new prospects on offer:
Our customers told us they love BNPL but were frustrated they couldn't use it for purchases more than NZD1,000, or extend the payment terms. humm solves that problem. As well as meeting the needs of our current customers, it will appeal to families and homeowners more than traditional BNPL does. We have also made significant investments in our technology to ensure it provides the simplicity and functionality our retail partners need to drive sales and attract new customers.
Flexigroup CEO Rebecca James added that there is no other product in New Zealand that offers the same level of purchasing power and flexibility:
Humm was designed with a clearly differentiated proposition of financing larger transactions above NZ$1,000. While we are strongly leveraging our eCommerce capabilities, we are also focused on building and solidifying our in-store network for larger purchases, a key strength of humm which is difficult to replicate.
About the Flexigroup share price
The Flexigroup share price has not seen the same skyrocketing performance as some of the other BNPL players such as Afterpay Ltd(ASX: APT) and Zip Co Ltd (ASX: Z1P). Instead, it has steadily declined since 2013, losing almost 80%.
However things appear to be turning around. The Flexigroup share price has started to gain ground recently, up 286% from its 52-week low of 38 cents in March this year.
