Afterpay rival PayRight targets larger purchases with $30m funds raised
Australia’s booming, but controversial, buy now, pay later market has another major competitor after fintech firm PayRight raised a total of $30 million to expand its operations, which targets consumers making larger purchases than Afterpay allows.
The company has largely flown under the radar in the sector, with $4.7 billion-valued ASX-listed Afterpay its most prominent rival. But PayRight is pitching itself as an option for retailers and service providers of bigger ticket items, rather than smaller impulse buys like clothing.
Its funding has been compiled through a mix of debt and equity raisings over the last year led by corporate advisory firm Henslow and wealth manager Escala Partners, with the most recently completed being a $10 million debt raise under a structured notes program.
Whereas Afterpay has a $2000 limit for its transactions, PayRight can advance up to $20,000 to its customers, and has an average transaction size of $2500.The company was founded by brothers Myles and Piers Redward in 2016 and the pair recognise they are operating in an increasingly competitive sector. They claim to have over 1000 merchants on their books, with around 200 new merchants joining the platform every month. Another rival Splitit has enjoyed a stellar run since its ASX IPO in January, with shares surging from an opening price of 20¢ to close last week at $1.56 and a $422 million market cap. Zip Money meanwhile has an ASX valuation of $515 million and also offers funds for much larger purchases up to $30,000.
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Source: Afterpay rival PayRight targets larger purchases with $30m funds raised