How humm’s credit offerings can help consumers and retailers alike
The Irish-based fintech is bringing the buy-now, pay-later retail credit concept to bricks-and-mortar shops – including Brown Thomas Arnotts – in a bid to support consumer confidence
Credit cards have transformed consumer finance; that is beyond question. Today, however, fintech is making a play to challenge the most common form of consumer finance: buy now, pay later.
In February, Irish-based fintech humm announced a new payments partnership with the country’s largest department store, Brown Thomas Arnotts. Beginning with its furniture division, the partnership enabled Brown Thomas Arnotts customers to access humm’s flexible products, meaning, with humm, customers can buy now and pay later in store by splitting their payments.
humm, a diversified full-service payments company and retail credit provider, is seeking to challenge what it sees as the status quo in the retail credit market by providing flexible products including interest-free credit offerings.
PJ Byrne, chief executive of humm’s Irish operations, said the company contributed to a positive cycle where businesses are able to expand and invest, leading to further growth and economic activity.
It’s not just the likes of Brown Thomas Arnotts that humm has in its sights, though. Small and new businesses can also benefit, Byrne said.
“humm’s aim in helping businesses to activate through retail credit refers to credit extended to consumers for the purpose of purchasing goods or services,” he said, noting that credit can stimulate demand for goods and services.
“This increased demand can then help businesses to activate or ramp up their operations, by providing them with more revenue and profits,” he said.
Notably, the e-commerce sector in Ireland has been experiencing significant growth in recent years. Indeed, according to recent data by the Central Bank, spending on clothing and electrical goods registered the largest increase in quarter-on-quarter terms, respectively 38 per cent and 24 per cent.
In light of this, e-commerce is an obvious avenue for all retailers and prospective retailers. Byrne said that humm already has over 11,000 business partners across Ireland and is growing because, for consumers, the advantage of retail credit is that it allows them to spread the cost of their purchases over time without incurring high interest charges, which are associated with credit cards.
“Our products appeal to consumers who are wary of using credit cards because of the high cost associated with them,” he said.
From the consumer point of view, humm’s credit approval process involves several steps: first, they apply for credit through the humm website or on the mobile app. After providing personal and financial information, including their name, address, employment details and bank account information, a credit approval process takes place.
For retailers, too, there is an advantage: retail credit services often have lower fees for merchants when compared to credit cards.
In addition, because with retail credit consumers can make their purchase and then pay it off in instalments over a set period of time, typically with no interest charged as long as they make their payments on time, it is particularly suited to managing large purchases.
“This can be especially beneficial for larger purchases, such as appliances or electronics, or dental services, which may be too expensive to pay for upfront. humm’s application process is quick and easy, which can make them a more attractive option than applying for a credit card,” he said.
