Ecommpay has announced a partnership with online finance provider humm to expand finance options for merchants in the travel and high-value retail sectors across the UK and Ireland.
The partnership aims to address a gap in the market for flexible credit solutions supporting purchases up to GBP £3,000, a segment that current Buy Now, Pay Later (BNPL) solutions have struggled to serve, as they are generally limited to lower value spends of up to around GBP £500.
Gap in high-value finance
According to Ecommpay, while BNPL is now a common tool for lower value transactions, sectors selling higher value goods-such as travel, furniture, jewellery, sporting equipment and electronics-have lacked equivalent flexible finance options. As a result, merchants in these areas have faced challenges with sales conversion at checkout.
Through partnering with humm, Ecommpay will enable its UK and Ireland merchants to offer online finance for goods and services up to GBP £3,000. These merchants are expected to benefit from increased checkout conversions and higher sales values, as well as improved cashflow. Payment processing by Ecommpay ensures merchants receive the full purchase amount upfront, independent of the customer's instalment plan.
Additionally, humm offers longer instalment periods compared to traditional BNPL providers, allowing brands to deliver what Ecommpay describes as a responsible and manageable credit product for shoppers, especially given current economic conditions.
Quotes from Ecommpay and humm
"There is a clear market opportunity to offer the flexibility of BNPL in the higher value goods sector, for everything from holidays to home improvements. Our new partnership with humm enables these businesses to help their customers spread the cost of their purchase, while also boosting checkout conversions and value."
said Rosanna Helm-Visscher, Head of Global Partnerships at Ecommpay.
"Ecommpay has a strong portfolio of clients in sectors where higher value goods are offered. We therefore saw the synergies between Ecommpay's credit strategy and our own flexible finance service."
added PJ Byrne, Chief Executive Officer of hummgroup.
Retailer and consumer demand
Insights from research conducted by Ecommpay in 2023 indicated that retailers not offering BNPL options risk losing customers at the final payment stage. Nearly half-45.2%-of retailers offering BNPL reported an increase in turnover. From the consumer perspective, Ecommpay's research also revealed that 33.2% of British shoppers would reconsider or remove items from their online baskets if BNPL was not available at checkout.
humm's experience in the sector
humm has developed a comprehensive product ecosystem since its establishment in Australia over three decades ago. The company's solutions are designed to cater to the needs of shoppers, retailers, and small and medium-sized businesses, supporting various purchase values and repayment demands.
The partnership is expected to enhance the range of payment and credit options for merchants working with Ecommpay, particularly those targeting customers purchasing higher value items, who require more flexible and longer-term finance arrangements than are commonly available through existing BNPL solutions.
