The Humm Group Ltd (ASX: HUM) share price is pushing higher on Thursday following the release of an update.
At the time of writing, the buy now pay later (BNPL) provider’s shares are up 1% to 97 cents.
What did Humm announce?
This morning the Afterpay Ltd (ASX: APT) rival announced a range of new partnerships that it believes cements its position as the leading BNPL provider in the health and wellbeing sector across Australia and New Zealand.
According to the release, Humm’s new partnerships include Maven Dental Group, CPAP Clinic, Aidacare, Removery, and Cosmetique. This means there are now over 3,500 unique health and wellbeing locations across Australia on its platform.
In addition to this, the company provided an update on the performance of this side of the business.
It advised that the health and wellbeing vertical continues to grow as a percentage of its overall volume in Australia. Financial year to date, it has increased 38% and recently hit an annualised run rate of $120 million. Management believes this demonstrates the strong appetite and need for instalment payments in the health industry.
The company also notes that with an average transaction size of over $4,000, Humm is attracting customers that other BNPL providers like Afterpay are not able to service.
A quarter of all dental chairs covered by Humm
Humm’s Chief Executive Officer, Rebecca James, appears very pleased with the company’s progress in the sector.
She said: “We entered the health market two years ago and have rapidly grown to be the largest BNPL provider in this space, delivering over $120m on an annualised basis. One in four dental chairs in Australia is now covered by humm.”
“This is being driven by our exclusive partnership with Centaur’s Dental4Windows software, which has integrated National Dental Plan into its leading quoting software and presents humm as the exclusive finance solution in over ten thousand treatment plans being offered every year.”
“Meanwhile, over 50% of enterprise audiology practices now offer humm’s fast, easy, and flexible solution offering financing for purchases that aren’t just nice-to-have, but a need-to-have. These practices have also chosen humm because of our significant understanding of credit risk in this sector,” she added.
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More reading
- Is the Affirm share price dragging ASX BNPL shares lower?
- Why the Humm (ASX:HUM) share price will be on watch on Thursday
- Is Afterpay (ASX:APT)’s BNPL competition heating up?
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Humm Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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