Does Bundll make any money for Hum?, page-30

Bundll was made out to be a our ticket to a whole battery of strategic partnerships.

Westpac NZ(Red Bird Ventures)
Velocity frequent flyer
Air New Zealand
RAIZ

The way it was sold to shareholders was that it was a volume play. Lots of transactions where we would receive our revenue. As Rebecca James put it “Bundll makes its money on the interchange fee – which banks charge each other for card-based transactions”.

Obviously it also makes it’s money on people who can’t afford to repay the debt by the end of the two week cycle and charges $2.50 for people to gives them two more weeks. Then the late payment fees and finally anyone desperate enough to get a superbundll pays more in fees than they would if they had a traditional credit card for the privilege of a shorter interest free period.

Problem is, it’s not a product that attracts the right type of customer. Lots of bad debts tied up in this thing for sure.

HUMM’s little things is much the same. Once the loop hole was created where customers could buy gift cards we created a monster death spiral for families who couldn’t afford to be put food on the table using it to buy Coles and Woolworths gift cards so they could do groceries.

All over these BNPL Facebook groups you see people complaining about not being able to buy gift cards with Humm and how they need to borrow money from people, go to other bnpls or simply go without because we don’t offer gift cards.

I feel these people have been let down by these product offerings and irresponsible lending has created a bigger problem for them. I’m glad HUMM has moved away from such predatory lending tactics and I hope we refocus on our point of differentiation.

BIG THINGS and Our commercial business can sustain this companies profits.