Fintech FlexiGroup (ASX: FXL) has entered into a partnership with Mastercard to expand the distribution of its buy-now pay-later (BNPL) platform Bundll.
Already live in Australia, Bundll allows customers to shop anywhere Mastercard is accepted and manage their purchases in instalments with inbuilt budgeting services.
Under the agreement, Mastercard will work with its partners to drive adoption and will support the development of an open-loop pilot allowing Bundll to work anywhere.
Mastercard Australasia division president Richard Wormald said the five-year agreement will deliver a sustainable growth path for the platform and expand the services on offer to customers.
"While there are lots of BNPL platforms around the world, this latest development for Bundll is differentiated in the way it is able to partner with existing banking systems and provide BNPL technology and products without needing to sign up local retailers, while still generating a sustainable revenue stream," Wormald said.
"With the growth of BNPL, Mastercard understands that many issuers around the world are looking to solve for this increasing consumer preference."
The partnership is the first for FlexiGroup's Humm Ventures, an initiative designed to spearhead innovation between the company and new partners.
Humm CEO Rebecca James said the Ventures initiative will enable local and global companies to partner with FlexiGroup to utilise its products and technology offerings within their own ecosystems.
"FlexiGroup has significant technology and data expertise within its market leading product suite, and through Humm Ventures we will collaborate and partner with the world's best technology and payments companies to realise that potential," James said.
"It will significantly increase the distribution potential for our technology stack so that our products can thrive in our partners' ecosystems, without impacting on core business.
"We are excited about the opportunities that Humm Ventures will create to expand our market and the geographies in which we operate."
Shares in FlexiGroup are up 8.88 per cent to $1.17 per share at 11.11am AEDT.
Business News Australia
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support