Why the Humm Group (ASX:HUM) share price is climbing today

Humm Group is aiming to disrupt the United Kingdom market.

| More on:
A happy woman stands outside a building looking at her phone and smiling widely

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Humm Group Ltd (ASX: HUM) share price is in positive territory during mid-afternoon trade. This comes after the company announced it has launched its buy-now, pay-later (BNPL) product into the United Kingdom market.

At the time of writing, Humm Group shares are up 1% to $1.005.

Humm Group expands BNPL offering

Investors appear pleased with the company's latest update to the ASX, sending its shares higher.

According to its release, Humm Group advised its BNPL product is now live in the United Kingdom (UK). This will give customers the opportunity to shop in-store and online and pay over instalments. Repayments consist of interest-free payment options from 10 weeks to 60 months.

The company noted the expansion strategy will use its existing retail partnerships in Ireland to also service the UK market. Currently, the Humm Group has over 1600 merchants on its books in Ireland.

Humm Group estimates an annual spend of around $200 billion per year across 4 target verticals for the UK market. They are Home and Home Improvement ($74.3 billion), Health ($63.8 billion), Automotive ($51.7 billion), and Luxury ($7.4 billion).

The retail spend in the UK is roughly $778 billion per year. This represents a sizeable market opportunity for the company to tap into other verticals.

Humm Group CEO, Rebecca James commented:

We're delighted that customers in the UK will now be able to humm their purchases, giving them more choice, transparency and flexibility over how and when they pay. UK customers want to shop smart and we're here to make that easier. With humm you can take your purchase home today, pay it off over five fortnights, have all your transactions and data digitally in one place, and all the while pay no interest.

In addition to the announcement, Humm Group reshuffled its UK board with three new appointments. The company stated that Mr Stephen Kirkpatrick took the role of chair and non-executive director, with Ms Helene Brichet and Mr Tim Turner also joining as non-executive directors.

Humm Group share price summary

Despite today's rise, Humm Group shares have had a disappointing run over the past 12 months. The company's share price is down close to 10% from this time last year, and 12% year-to-date.

On market capitalisation terms, Humm Group is valued at around $490 million.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Humm Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Man with rocket wings which have flames coming out of them.
Broker Notes

These ASX 200 shares could rise 40%+

Big returns could be on offer from these shares according to analysts.

Read more »

a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.
Broker Notes

Analysts say these ASX shares are top buys in June

Brokers are urging investors to buy these shares. Let's find out why.

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors finished the trading week on a high note this Friday.

Read more »

A man in trendy clothing sits on a bench in a shopping mall looking at his phone with interest and a surprised look on his face.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Brainchip, Findi, Lottery Corp, and REA shares are falling today

These shares are ending the week in the red. But why?

Read more »

Happy teen friends jumping in front of a wall.
Share Gainers

4 ASX 200 shares leading the charge higher this week

Investors have been piling into these four ASX 200 shares this week. But why?

Read more »

Woman and man calculating a dividend yield.
REITs

What price target does Macquarie have on Goodman Group shares?

Goodman Group posted an interesting set of numbers in Q3. Here's Macquarie's take.

Read more »

A happy investor sits at his desk in front of his laptop and does the mexican wave with his arms to celebrate the returns from his ASX dividend shares
Share Gainers

Why Catapult, Champion Iron, Healthco, and Meeka Metals shares are pushing higher today

These shares are ending the week on a high. But why?

Read more »