Flexigroup (ASX:FXL) launches humm in New Zealand

Flexigroup advised the market it has launched its humm product in New Zealand, following the success of Oxipay.
The post Flexigroup (ASX:FXL) launches humm in New Zealand appeared first on Motley Fool Australia. –

Red launch button with rocket symbol on keyboard

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.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended FlexiGroup Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Flexigroup (ASX:FXL) launches humm in New Zealand appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!