Douugh partners with Humm Group to launch US-based BNPL product
Australian neobank, Douugh, has signed a partnership deal with Humm Group to launch a US-based buy now pay later (BNPL) product.
Humm, formerly Flexigroup, will underpin the new product with the technology platform. Named “Credit Jar”, it will allow incremental payments on purchases up to $1,000.
As part of the partnership, Humm is investing $2.5 million into Douugh for development and marketing, part of a $12 million raise conducted by the neobank.
Douugh CEO, Andy Taylor, says Credit Jar is designed as a safety net for unexpected expenses.
“We are treating it as a credit product,” he says. “Our solution will help boost a customer’s credit score when repaid on time.”
Taylor says Credit Jar is only available to people who can handle repayments as part of their everyday budget.
Humm CEO, Rebecca James, says the Douugh deal is her company’s first steps into the US.
“At the same time, we are demonstrating how Humm Ventures can create innovative and novel ways to take Humm’s world class technology and capabilities to expand its relevance and distribution.”
Douugh’s agreement with Humm is still subject to regulatory approval, and an agreement with Douugh’s US-based banking partner Choice Bank.
Douugh debuted on the Australian stock exchange at the start of October.
Describing itself as “financial wellness platform”, Douugh offers a range of banking services.
Douugh says it uses machine learning to automate where it diverts funds. The automation, which can split deposits, is based on rules set up by the user.
The neobank has aimed to create differentiated “Jars” for some time. Taylor announced the firm’s intention to move into wealth management earlier this year.