Australia issues interim stop order for Humm's BNPL products (updated)

Humm

26/05/2023 24:22

(Adds details on the interim stop order, Humm comment)
       May 26 (Reuters) - Australian fintech company Humm Group
 HUM.AX  said on Friday its unit got an interim stop order from
the country's corporate regulator restricting it from issuing
buy-now-pay-later products to new customers.
    The interim stop order relates to Australian Securities and
Investments Commission's (ASIC) concerns regarding the target
market determination for the company's buy-now-pay-later
products, Humm said in a statement. 
    The company said it is complying with the requirements of
the order, adding that it can continue to service existing
customers to whom the product has already been provided.
    Humm is Australia's third-largest BNPL provider with about
14% market share, according to IBIS World.
    "Hummgroup is seeking to work closely with ASIC to urgently
address the concerns raised in relation to the humm BNPL target
market determination," the company said.
    ASIC did not immediately respond to a request for comment.

 (Reporting by Riya Sharma in Bengaluru; Editing by Devika
Syamnath)
 ((Riya.Sharma@thomsonreuters.com;))