Humm: Buy Now Pay Later Guide
Humm is a buy now, pay later (BNPL) service that you can use online or instore through their iPhone and Android apps.
BNPLs are services that operate between retailers and customers. Retailers get their funds upfront, and people receive their purchases straight away while paying off the purchase cost in instalments back to the BNPL.
This won’t be a guide on all the ins-and-outs of BNPL services, but you can imagine them as an alternative to layby, except they function more as a credit card.
What will this guide cover?
This guide will cover the key features of Humm, and frequently asked questions.
I try to avoid offering financial advice on the pros and cons of BNPL. The key takeaway is that you should only use Humm and other BNPLs when you can already afford to pay for the product upfront.
These services should be to help you manage your cashflow only, for example, keeping more money in your mortgage offset account.
On that basis, this guide will not cover aspects like interest and late fees, as I am going to presume you' won’t be incurring those!
Right, so what does Humm offer in New Zealand?
Humm in New Zealand is split into two products:
Little Things for purchases up to $1000 (everyday shopping, up to a maximum of five transactions at any one time).
Big Things for purchases over $1000 and up to $10,000 (large purchases, you have to get pre-approved for each purchase).
How much credit you get access to with Humm depends on their approval process, which includes a credit check. In many cases, you may not be able to borrow the maximum amount.
I used to only have access to a limit of $400, but now have access to $1000, despite not having ever used Humm yet.
Applying for Humm
You can use Humm by downloading their app from the App Store (iPhone) or Google Play Store (Android). You'll then go through an approval process, and you’ll need your New Zealand driver licence or passport handy.
To be approved you need to:
Be a permanent resident of New Zealand
At least 18 years of age.
Have a permanent job (at least 25 hours a week) or be on a New Zealand Super or Veteran’s Pension.
Be sure you’re not insolvent (or declared bankrupt)
Once you've been approved you can then spend up to your limit instore and online with retailers who accept Humm.
When shopping online you can select the Humm payment option at checkout for stores that offer the service.
When shopping instore you use the Humm app to create a barcode, which is then scanned at the point of payment.
Using Humm in-store or online
When shopping online at participating stores, choose Humm as your payment method at check-out. You’ll then be prompted to login, confirm a few details, and then your purchase will be processed as it would if you were paying with a debit or credit card.
If you are shopping in-person, you can use the Humm app to create a unique bar code for your purchase. Take the barcode to the checkout and they’ll scan or key in the code. Quite simple!
What cards can I use to repay my Humm account?
When you apply, you will need to nominate a payment method which can be a debit card or credit card. Once nominated, repayments are deducted automatically from the account when due.
Your payment method will either need to be a Visa or Mastercard. Alas, American Express cardholders miss out again.
Do I have to pay anything upfront when making a purchase?
You need to pay a deposit upfront when making a purchase. In New Zealand, the deposit is 20%, regardless of whether you are using Humm Little Things or Big Things.
Humm repayments and fees
Humm repayments are spread out over 5 fortnightly or 10 weekly repayments for Little Things.
For Big Things, the payment frequent depends on where you shop and what you buy. Frequency could be 6, 9, 12 months all the way up to 24 months.
If you have multiple purchases, the repayments may not be due on the same day – it depends on when the purchase was made. The schedule of repayments will appear in your Humm app.
The monthly fee for Big Things is due on the first business day of the month, with the $20 establishment fee charged at time of purchase. There is also $2.50 monthly fee.
There are no interest charges on either Humm Little Things or Humm Big Things.
Can you shop anywhere with Humm?
Humm is not available to use everywhere, but it is available in plenty of major stores across New Zealand including Farmers, Briscoes, Rebel Sport, PB Tech, and Flight Centre.
You can find a full list of stores here: https://www.shophumm.com/nz
Once you’ve chosen the category of retailer you’re looking for, you can search by brand or suburb name. Be sure to also search for surrounding suburbs.
They add new stores all the time, and they email frequently with offers and competitions that they run (too frequently I might add).
How to cancel a Humm account
You can cancel your Humm account at any time by calling Humm on 0800 189 236. However, they'll only close your account once you've repaid your balance in full.
Does Humm have a rewards programme?
Nope, there is no rewards programme for Humm in New Zealand. There might be one day - it took Afterpay a while to introduce theirs - and I’ll update this guide if and when it happens!
Summing up
I personally love BNPL services as they allow me to shop now and spread my payments onto different monthly credit card statements, which I then go on to pay in full anyway.
For those who are financially savvy, they can be an effective way of managing your cash flow and keeping your money in the bank for longer.
Humm is not a product that I have used, as most places I shop tend to accept Afterpay (which have a reward program and discounts off purchases).
I might reconsider this if they launch something in New Zealand in the future.
