The Humm Group Ltd (ASX: HUM) share price is having a subdued day as it announces a partnership with Westpac Banking Corp's (ASX: WBC) New Zealand division.
At the time of writing, shares in the buy now, pay later (BNPL) provider are trading for 99.5 cents – down 1.49%. The S&P/ASX 200 Index (ASX: XJO), meanwhile, is 0.39% higher.
Let's take a closer look at today's news.
The Humm share price is falling
In a statement to the ASX, Humm Group declared it has "entered into a joint venture agreement with Red Bird Ventures Limited" – a subsidiary of Westpac NZ – to launch its BNPL product, bundll, to the New Zealand market.
Bundll is a tap and go service on a customer's phone. Using the Mastercard Inc (NYSE: MA) network, it allows the user to use BNPL anywhere and for any amount. Bundll will be available to all New Zealanders, but Westpac NZ customers will receive "preferential" benefits.
Red Bird has the option to buy equity in bundll New Zealand as part of the deal.
Investors are not rating today's news, judging by the drop in the Humm share price.
Management commentary
Humm Group CEO, Rebecca James, said
We are delighted to be partnering with Westpac NZ to bring bundll to New Zealanders. BNPL is one of the fastest growing segments of the financial industry, and with this new arrangement Westpac NZ will reap the benefits of having an innovative and customer driven BNPL offering without having to build the product themselves.
This is our first deal under our strategic agreement with Mastercard and we are actively in discussions with a number of banks, loyalty programs and financial institutions about similar potential partnerships around the globe.
Division President of Mastercard Australasia Richard Wormald added:
With bundll, Humm group have developed a unique solution that easily allows banks, loyalty programs or larger retailers to offer a solution to their customers, without needing to undertake any IT development. We are excited about the potential this has globally.
Humm share price snapshot
Over the past 12 months, the Humm share price has declined 15.4%. In contrast, BNPL competitors Afterpay Ltd (ASX: APT) and Sezzle Inc (ASX: SZL) are 61% and 8% higher.
Humm Group has a market capitalisation of approximately $485 million.
