humm group limited (ASX: HUM) (“hummgroup”) has entered into a joint venture agreement with Red Bird Ventures Limited (“Red Bird”), a subsidiary of Westpac NZ, to bring buy-now-pay-later product bundll to the New Zealand consumer finance market. The arrangement will see Red Bird have the option to take an equity stake in bundll New Zealand.
The new partnership is the first contract under hummgroup’s strategic global agreement with Mastercard and will see bundll available to all New Zealanders, with preferential benefits offered to Westpac NZ customers.
Hummgroup’s Auckland-based Deputy Group Chief Executive Officer Chris Lamers 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.
“bundll is a product that is built with partners in mind, so for organisations looking to enter the customer-first BNPL market, it’s the perfect solution.”
Using the Mastercard network, bundll allows customers to BNPL wherever they like, with no minimum spend – the first of its kind in New Zealand. The product combines purchases into easy to manage instalments in a convenient digital App. In the first quarter of 2021, Australian bundll users made more than one million transactions.
Westpac NZ Head of Digital Ventures, Lewis Billinghurst, said:
“As a leader in the New Zealand banking sector, we’re always looking for new and innovative ways to help people manage their finances and spend with confidence. Our customers are thinking differently about cash and credit: they want more options, flexibility and transparency. hummgroup’s truly innovative product bundll will help them achieve this.”
In November 2020, hummgroup and Mastercard signed a strategic global agreement to work together to take bundll into new geographies on a partnership basis.
Richard Wormald, Division President, Mastercard Australasia said:
“Mastercard works with a lot of issuers around the globe who are looking to enter the fast-growing BNPL market. As is evident from this joint venture, a scheme-based solution is ideal for banks who do not want the effort and risks associated with a closed loop model.
With bundll, hummgroup 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.”
bundll will be available to customers in New Zealand from August 2021.