flexigroup rolls out “next gen credit card” as it eyes global deal with banks

  • By Christine St Anne

flexigroup has rolled out its rebranded its Skye Mastercard to offer “long-term interest free superpowers” announcing a strategic partnership that will give its buy now, pay later business access to a global network of banks.

On Thursday, the business announced that humm90, a rebrand of its Skye Mastercard, as now gone live as well as partnerships with Mastercard and AGL Energy. 

The new card will offer up  110 days interest free on every purchase with no minimum spend, customers also have the flexibility to convert purchases of $250 or more into an interest free instalment plan across 9, 12 or 15 months, known as humm®90WRAP.

flexigroup’s BNPL business humm also signed an exclusive five-year strategic partnership with Mastercard to take “bundll powered by humm” global, the firm’s CEO Rebecca James said at the annual general meeting on Thursday. 

According to James, the partnership will see Mastercard working with its global network to drive adoption by banks internationally - discussions are already well progressed with a number of global banks”. 

A recent report from Morningstar highlighted that merchant fees charged by BNPL provides could come under pressure as retailers feel the margin squeeze.

The humm deal with Mastercard to allow access to banks should diversify the earnings for flexgrioup. 

“The strong differentiator of bundll is the ability to partner with existing bank systems and provide buy now pay later products without needing to sign up local retailers, while still generating sustainable revenue streams,” James said.

According to the CEO, bundll “truly offers a turnkey but flexible solution to banks”.

flexigroup will also roll out humm ventures with Mastercard as its first partner. 

The initiative will explore new and innovative ways to rapidly expand the global reach and distribution of humm’s technology. 

On Thursday, flexigroup also announced an exclusive two-year arrangement with AGL Energy. 

Under the deal, AGL’s customers will be able to access long-term finance solutions for the purchase of combined solar and battery installations. 

New solar agreement 

In September flexigroup won a case against the ACCC. 

The Australian Competition Tribunal decision to amend elements of the New Energy Tech Consumer Code was in line with flexigroup’s application. 

“Since this decision, humm has also experienced renewed merchant interest to sign preferred partnership arrangements which means humm is the only buy now pay later finance option offered by an expanding number of solar merchants,” James said. 

The roll out of new products and partnership deals follows a recent review by ASIC into the BNPL industry

The corporate regulator had highlighted concerns around missed payments and late fees.

Speaking at the AGM, James said that “pleasingly we’ve continued to see a downward trend in 30+ days arrears from July 2020”. 

In the first quarter, 30 plus day areas fell by 60 basis points to 2.2 per cent in its BNPL product which according to James was a result of a prudent approach to credit risk and approvals.