Humm, the buy now, pay later offering from Flexigroup Ltd [ASX:FXL] has launched in New Zealand on the back of the company’s success in Australia.
Trading at $1.08 at time of writing, the FXL share price is edging slightly higher on the announcement.
What’s happening at Flexigroup?
There is an ongoing shift in how consumers spend online with the rise of buy now, pay later (BNPL) providers.
With Afterpay Ltd [ASX:APT] leading the way in Australia, the business model proved to be a hit with consumers, so much so that many other providers followed suit with their own similar offerings.
One of the drawbacks of this model for some can be the lower limit of the credit available. In some cases, $1,000–2,000 may be the limit.
With Flexigroup entering the New Zealand market under the Humm branding, they have decided to address this issue and be the first in New Zealand to do so.
Humm will be offering their consumers up to NZ$10,000.
Which opens the doors for a wide range of new offerings from healthcare, to solar products, to luxury offerings.
Where to from here for Flexigroup?
With the launch of their new product offering in New Zealand, it’s important to assess the economy of the country.
When COVID-19 emerged in New Zealand the country went into a strict lockdown, which appeared to halt the transmission of the virus.
The knock-on effect of this being that the country could open-up for business sooner and get the economy moving again.
This could be a positive for Flexigroup with people getting back to work, looking to resume normal life, and spending again.
Being a nation of just under five million people though, the new Flexigroup expansion may not be enough to really push the FXL share price up given the challenges facing the Australian economy.
Looking at the chart, we can see that the price for the company has moved sideways over the last few months, before starting to fall away.
If this fall continues, then the levels of $1.05 and $0.95 may provide support for a fall. Should it turn to the upside, then the level of $1.37 would need to be broken for the price action to be considered bullish.
For Money Morning