The FlexiGroup Limited (ASX: FXL) share price will be on watch today after the financial services company released an update on its buy now pay later business.
What did FlexiGroup announce?
According to the release, the company's buy now pay later offering has been growing in popularity during the pandemic. So much so, like rivals Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P), it has just passed a couple of milestones.
FlexiGroup has added over 380,000 new interest free instalment customers to its platform over the last 11 months. This has lifted its customer numbers to over 2.1 million, making it one of the largest instalment players in the ANZ market by both customer numbers and volume.
In respect to the latter, the company has processed $2 billion of transactions through its platform over the last 11 months.
Management revealed that this growth has been driven by the continued expansion of humm, along with its strategic partnership with Mastercard. The payment giant powers its interest free instalment products and enables customers to shop anywhere Mastercard is accepted.
Humming along very nicely.
The release advises that FlexiGroup's digital offering has seen over 600,000 app downloads.
Positively, these apps are being opened more frequently than ever by consumers. The company notes that its payment products are used for purchases both small and large, with customers making an average of 9 purchases a year through its apps.
This led to online sales volumes for the humm platform increasing 103% in the first half and accelerating to 282% for the five months to May 2020.
The company's Chief Executive Officer, Rebecca James, commented: "Our firm leadership position in interest free instalment transactions over $1,000, which is well in excess of the BNPL industry average, continues to be a strong differentiator."
"We don't believe in a one size fits all approach. Our services are designed not only with category specific features, but individually customisable payment options that empower each consumer to make their own decisions, set their own plan and ultimately stay totally in control of their own buying. It is this approach which continues to drive growth in high value verticals such as health, home and home improvement, and luxury goods," she added.
The chief executive was particularly pleased with the frequency that customers are using its products.
She explained: "While we've added 380,000 new customers to our platform over the last 11 months, the most significant change is the number of times our customers are choosing to use our payment services – now 9 times a year and growing. This demonstrates that our strategy is well and truly working, and that our brands are now well entrenched with our customers."
