The FlexiGroup Limited (ASX: FXL) share price has been a strong performer on Monday.
The financial services company's shares are up 8% to $1.31 at the time of writing.
Why is the FlexiGroup share price jumping higher?
This morning FlexiGroup released an update on its buy now pay later platform, Humm.
According to the release, the Afterpay Ltd (ASX: APT) rival continued its strong sales and merchant growth during the fourth quarter.
In respect to its sales, fourth quarter ecommerce volume was up 315%, with total transactions up 447% on the prior corresponding period.
Management advised that this has been driven by a record number of ecommerce and instore integrations during the quarter and a new BPAY feature which allows customers to pay for bills in manageable interest.
At the end of the quarter, the humm platform had a total of 56,000 retail partners across the Australia and New Zealand region.
New high-profile merchant additions include online homewares retailer Temple & Webster Group Ltd (ASX: TPW), furniture retailers Amart Furniture and Snooze, and luxury brand Bally.
They will soon be joined by a large number of veterinary hospitals. FlexiGroup has just signed a strategic partnership with Veterinary Growth Partners that will see approximately 170 independent Veterinary Hospitals have access to humm.
Management notes that this partnership, combined with online pet retailers PETStock and PetPost, ensures that pet owners will have a complete solution with humm.
Differentiated product offering in demand with merchants.
FlexiGroup's Chief Executive Officer, Rebecca James, appeared to be pleased with the quarter and noted how its differentiated product offering is filling a gap in the market.
She said: "The continued growth in new retailers joining the humm platform, particularly in the health and home categories, shows that our differentiated product offering is compelling to merchants. With the ability to facilitate larger transactions than other buy now pay later providers, humm is continuing to attract a wider range of merchants who previously haven't offered buy now pay later solutions to their customers."
"The work we've undertaken to simplify and speed up merchant integration, with online retailers now up and humming in 48 hours, is driving our continued business performance. With a growing and well diversified merchant base across multiple verticals and a growing awareness of humm in the market, we are delighted to see our strategy of offering solutions for big and small purchases continuing to deliver," she added.
