Humm (formerly Flexigroup) is a BNPL provider operating in Australia, New Zealand, and Ireland. Flexigroup acquired Certegy Australia (a provider of interest-free financing in Australia and New Zealand) for AUD 31.4 million (approximately USD 30 million) in 2008. It underwent a corporate rebrand in August 2020 to focus on the BNPL segment, which saw Flexigroup unified with its BNPL brand Humm (launched in 2019 by Flexigroup through the restructuring of its legacy platforms, including the Certegy financing products). Flexigroup’s consumer finance (cards), commercial leasing, and SME financing services are also provided under Humm Group after the rebrand. Additionally, the company announced plans to raise AUD 140 million (approximately USD 97 million) in funding. In December 2020, it entered a strategic partnership with neobank Douugh to bring BNPL services to the US market.
Humm’s BNPL solutions include both B2C (Humm, Bundll, and Humm90) and B2B (HummPro) offerings. In partnership with Mastercard, Bundll launched in February 2020 to provide cardholders the option to use their ordinary Mastercard at any merchant either in-store or online to make purchases up to AUD 1,000 (approximately USD 730) and repay in 14 days at 0% interest. Furthermore, Humm90 (launched in November 2020) offers up to 110 days interest-free on all purchases with no minimum spend. In addition, users can convert purchases of more than AUD 250 (around USD 180) into an interest-free installment plan across 9, 12, or 15 months, while long-term financing up to 60 months is available at select retailers.
Humm’s original BNPL product is split into two, namely, “Little things,” providing financing for smaller ticket purchases up to AUD 2,000 (approximately USD 1,460), and “Big things,” financing purchases up to AUD 30,000 (around USD 22,000). Smaller ticket purchases can be spread across 5-10 biweekly payments, while larger ticket items can be repaid over 6-60 months. Upon signup, users will be approved for the smaller wallet, and credit limits will depend on the soft credit check conducted by Humm. The approval process for purchases above AUD 5,000 (approximately USD 3,660) is longer and is provided to fund one specific transaction.
Humm generates revenue through merchant service fees, interest, and consumer fees. The late payment fee for both wallets amount to AUD 10 (USD 8), respectively. The larger wallet charges include an establishment fee between AUD 35 (USD 25) and AUD 90 (USD 65) for initial purchases and AUD 22 (USD 16) for repeat purchases.
Humm launched its B2B solution for small businesses, HummPro, in February 2021. The solution offers businesses to secure up to AUD 30,000 in financing to be paid in 6-12 months for a monthly charge of AUD 15 (USD 11), a minimum monthly plan fee of 1.5% (of the monthly balance), and a late fee penalty of AUD 20 (USD 15).
In June 2021, it launched a digital card, Humm//TAPP, allowing users to pay in-store regardless of the merchant’s POS system. Humm claims that it significantly reduces the time to integrate with the merchant (usually three months) for the in-store use of BNPL solutions. The service is provided in partnership with Mastercard and is available in-store at all Humm merchants.
Humm announced that the Australian payments firm Latitude Group Holdings Ltd. (Latitude) had extended a proposal to acquire Humm Consumer Finance (HCF) . HCF comprises its BNPL, installment, and credit card operations. The two parties have entered into a non-binding agreement to conduct due diligence and negotiations for a definitive agreement.
In FY2021, Humm recorded a GMV of AUD 2.7 billion (approximately USD 2 billion) and revenue of AUD 121 million (approximately USD 92 million) with 82,000 merchants and around 2.7 million customers. Interest income represented 75% of its revenue, while the rest included account servicing fees and transaction processing fees. As a result, the segment generated AUD 100,000 (approximately USD 75,000) in net profit in FY2021.