Consumer finance company humm (which changed its name from Flexigroup this week) has formed a joint venture with fintech start-up Douugh to develop a buy now pay later offering for the US market.

Under a non-binding memorandum of understanding the two companies will work towards the launch of a Douugh-branded BNPL “anywhere” product in the US in the first half of 2022.

humm is making a A$2.5 million investment in Douugh through humm ventures, as part of a $12 million placement.

Douugh will use humm’s BNPL platform to offer consumers a line of credit up to US$1000, with access via a virtual Mastercard. Repayments will be over six weeks.

humm has had BNPL in its product set for many years but has focused more on that part of its business over the past couple of years.

Douugh was listed on the ASX in October. According to its prospectus, it is an open banking play whose customers allow their banking data to be collected and analysed by Douugh, which then offers a range of budgeting and financial tools.

In the US it has been running a pilot, working with Choice Bank under an agency arrangement. It offers a transaction account and debit card through its partner bank.

It plans to launch its product in Australia next year with Regional Australia Bank as its local partner.

humm’s announcement comes only a few weeks after it announced a strategic partnership with Mastercard to work with Mastercard’s partners to drive adoption of humm’s bundll product.

Douugh said in a statement that its BNPL offering, which will be branded Credit Jar, “represents a step change in the model because we are treating it as a credit product, which is what we strongly believe it should be.”