Flexigroup, in partnership with Mastercard, says consumers can now use the service to buy now, pay later with any vendor in store or online whether or not they are a signed merchant with its service.
Flexigroup will use the bundll service to target everyday consumer spending that is currently done on debit cards.
“This is a product that really is, we feel, displacing that debit card spend but with greater functionality for the end customer,” said Flexigroup chief executive Rebecca James.
“So we’re really focused on day-to-day expenses – it’s for coffee, petrol, it’s for nights out.”
The only other player doing something similar is the Commonwealth Bank-backed Klarna which offers a shop-anywhere service using its app that customers can use for online purchases.
Flexigroup’s humm product offers a traditional buy now, pay later service for larger purchases, with the average transaction size of $2800 and a six-week payback period.
According to Flexigroup, trials of the new bundll service has had an average transaction size of $35 to $40.
While the first two weeks are free, customers are then charged a flat fee of $5 to extend payments for another two weeks. A Superbundll option is then available to extend payments.
Flexigroup investor Tamim Asset Management’s Ron Shamgar said this is where he expects the company to make its money on the service.
It also avoids the crush of buy now, pay later players at the point-of-sale.
“It’s getting pretty crowded to get on the checkout with all the buy now, pay later providers, I think it’s clever,” he said.
Flexigroup shares were up as much as 14 per cent to a higher of $2.12 Monday morning and closed unchanged at $1.85.
Colin Kruger is a business reporter. He joined the Sydney Morning Herald in 1999 as its technology editor. Other roles have included the Herald’s deputy business editor and online business editor.