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Highlights
- Buy Now Pay Later (BNPL) is the new trending payment method for both online as well as offline purchasing.
- In recent times, BNPL companies have registered a greater number of active users doing transactions on digital platforms.
- Humm, Zip, and Latitude Group are some of the small-cap BNPL stocks listed on the Australian Securities Exchange with positive QTD returns.
Based on the instalment-payments method, the Buy Now Pay Later (BNPL) sector has become a new trend in both online and offline purchasing. Consequently, the customer base for BNPL players has swelled manifold in recent times. Companies leveraging buy-now-pay-later services have grown their visibility, especially in the digital world with a greater number of active users doing transactions on online portals.
Today, we will dig into the growth trajectory of three small-cap (small-sized market capitalisation) BNPL stocks listed on the Australian Securities Exchange (ASX).
Image Source: © 2022 Kalkine Media ®, Data Source: Refinitiv (as on 04 Aug)
Humm Group Limited (ASX:HUM)
humm group has been developing accessible consumer finance products, such as humm, bundll, humm90 and hummpro, for its customers across Australia, New Zealand, Ireland and the United Kingdom. The group has been managing purchases for a wide customer base of more than 2.7 million.
As per hummgroup’s half-yearly report for 1H22, Humm secured an unrestricted net cash position of AU$132 million and an undrawn syndicated debt facility of AU$110 million (as of 31 December 2021).
HUM shares price gained 28.04% on a quarter-to-date (QTD) basis.
Zip Co Limited (ASX:ZIP)
One of the fastest growing providers of BNPL services, Zip operates point-of-sale credit and digital payment services worldwide. Its network is spread across 14 markets in different parts of the world.
In its fourth quarter ending 30 June 2022 (Q4 FY22), Zip declared revenue of AU$160.1 million, a ~27% year-on-year (YoY) revenue uptick. Also, the number of customers rose to 12 million, marking 64% YoY growth. The company’s cash transaction margin stood at 2.4%, compared to 2.3% in the preceding quarter of the year.
ZIP shares appreciated by over 201.13% on a quarter-to-date basis.
Latitude Group Holdings Limited (ASX:LFS)
With a wide customer base spanning Australia, New Zealand, Canada and Singapore, Latitude Group has become one of the renowned digital payment, instalment, and lending businesses.
In its 2022 Annual General Meeting, the Group announced a statutory profit of AU$160 million in FY21. Its cash net profit after tax (NPAT) was recorded at AU$232 million. The company expects to keep up the momentum with increased digitisation, international expansion, new partnerships, and acquisitions in the year ahead.
The stock price of LFS saw an increase of 32.35% on a QTD basis.
