The UK buy-now-pay-later (BNPL) market is a crowded space, with multiple companies vying for a chunk of the lucrative sector. Entering the fray is Australian BNPL firm Humm, which has launched its first alternative credit offering in the UK.
The company will be offering two options in the UK market and is set to take on some of the existing well-known names such as Zilch, Curve, Laybuy, Klarna and others.
Humm is a subsidiary of Australia-listed consumer finance company Hummgroup, which was founded in 1998.
Two new offerings for the UK market
BNPL companies have sought to differentiate in a crowded market by offering variations of the service. In Humm’s case, it has launched in the UK with two offerings: “pay in five” for purchases between £1 and £500, and “Pay in 12”, for purchases between £500 and £3,000. Both of these options require the first payment to be done at the point of purchase.
Humm said these plans will deliver a more flexible and accessible BNPL option for consumers. Customers will also get the option of making ad-hoc repayments at any time, through the self-service customer portal, without any early repayment fees.
The company will enable consumers to choose their date of next repayment at checkout, and spread their credit limit across different stores and over multiple purchases.
Humm UK CEO, PJ Byrne, said: ”At Humm, we hope to bring our learnings from the Australian market to the UK credit landscape. These introductory product offerings are the first of a much broader and flexible range of credit options for UK consumers.”
Regulation looms for UK’s BNPL sector
The UK government is currently reviewing regulatory options for the country’s BNPL sector. It follows a government-led report that raised concerns that BNPL products increased the risk of consumers getting into debt.
Additionally, Humm is also seeking FCA approval to launch its entire product portfolio in the UK next year. Post regulation, Humm says it will be able to lend up to £30,000 over a 72-month period.
Last month UKTN reported how Berlin-based B2B BNPL provider Billie raised a notable $100M funding to enter the UK market.