ASX Fintech: Laybuy Group gets a boost from solid quarter as BNPL competitors stay on the move
Link copied to
A round of updates this morning indicated some steady momentum for ASX fintech platforms across BNPL, consumer finance and financial wellness apps looking to take market share from traditional finance companies.
Among them was New Zealand-based Laybuy Group (ASX:LBY), which reported a record quarter.
The company delivered a Gross Merchandise Value (GMV) record NZ$206 million for Q2, and is on track to reach the $1 billion GMV target for FY22.
During the quarter, Laybuy also secured a new debt facility with Partners for Growth of £30 million, to support its UK loan book.
In August the company signed a major merchant contract with the UK’s largest fragrance retailer, The Fragrance Shop, to provide its customers with Laybuy’s BNPL offering.
Shares in LBY outperformed compared to other fintech stocks this morning, rising by over 10% at the opening bell.
However, at ~55c in morning trade the stock is still well below its 2020 listing price of $1.41.
Humm Group (ASX:HUM), which offers a range of financial services including BNPL, also provided a trading update where it was Q1 sales volume increased by 40% from the previous corresponding period (pcp) to $763.3m.
That was mainly underpinned by the sales volume of its BNPL segment, which grew 44.5% on pcp to $308.8m in the quarter.
The company has a large 2.7 million customer base scattered in Australia, New Zealand, Ireland, the UK, and soon Canada.
It offers a range of BNPL products comprising humm, bundll and hummpro.
The BNPL updates this morning follow on from Zip Co’s (ASX:Z1P) record quarterly results announced on Monday, where it said sales doubled y/y.
Zip delivered a record quarterly transaction volume of $1.9b, up 101% from a year ago, as it undergoes a rebranding exercise worldwide that includes streamlining its US brand Quadpay to Zip.
It all follows the marquee BNPL news of the year in August when US-based Square, led by Twitter founder Jack Dorsey, paid around $39 billion in shares to buy market darling Afterpay (ASX:APT), and signalled Square’s entry to the Aussie market.
That announcement led to the big four banks offering similar services of their own, with Westpac now joining NAB and CBA in offering a no-interest credit card that aims to wrestle away BNPL sector’s millennial customers.
The financial wellness and non-bank lender delivered new loan originations of $132m for Q1, up 113% on pcp.
Total loan originations on the books are now $743m, up 142% on pcp after an unbroken record of 21 consecutive quarters of growth.
“There is such a massive runway of growth ahead of us in the markets of auto finance and personal loans, and as lock-down restrictions start to lift, consumer demand will only grow,” commented Wisr CEO, Anthony Nantes .
In July, Wisr launched its first major national brand campaign, with the slogan: ‘For your smart part’.
Elsewhere, online shopping rewards platform Cashrewards (ASX:CRW) rose on the back of a takeover offer.
However, the deal was priced at a 35% discount to CRW’s listing price just last December. Read more on that here.