The Humm Group Ltd (ASX: HUM) share price is in positive territory during mid-afternoon trade. This comes after the company announced it has launched its buy-now, pay-later (BNPL) product into the United Kingdom market.
At the time of writing, Humm Group shares are up 1% to $1.005.
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Humm Group expands BNPL offering
Investors appear pleased with the company's latest update to the ASX, sending its shares higher.
According to its release, Humm Group advised its BNPL product is now live in the United Kingdom (UK). This will give customers the opportunity to shop in-store and online and pay over instalments. Repayments consist of interest-free payment options from 10 weeks to 60 months.
The company noted the expansion strategy will use its existing retail partnerships in Ireland to also service the UK market. Currently, the Humm Group has over 1600 merchants on its books in Ireland.
Humm Group estimates an annual spend of around $200 billion per year across 4 target verticals for the UK market. They are Home and Home Improvement ($74.3 billion), Health ($63.8 billion), Automotive ($51.7 billion), and Luxury ($7.4 billion).
The retail spend in the UK is roughly $778 billion per year. This represents a sizeable market opportunity for the company to tap into other verticals.
Humm Group CEO, Rebecca James commented:
We're delighted that customers in the UK will now be able to humm their purchases, giving them more choice, transparency and flexibility over how and when they pay. UK customers want to shop smart and we're here to make that easier. With humm you can take your purchase home today, pay it off over five fortnights, have all your transactions and data digitally in one place, and all the while pay no interest.
In addition to the announcement, Humm Group reshuffled its UK board with three new appointments. The company stated that Mr Stephen Kirkpatrick took the role of chair and non-executive director, with Ms Helene Brichet and Mr Tim Turner also joining as non-executive directors.
Humm Group share price summary
Despite today's rise, Humm Group shares have had a disappointing run over the past 12 months. The company's share price is down close to 10% from this time last year, and 12% year-to-date.
On market capitalisation terms, Humm Group is valued at around $490 million.
