Openpay delivers continued strong growth
ASX-listed ‘Buy now. Pay smarter.’ company, Openpay have released their quarterly business update for the period ended 30 June 2021 (Q4 FY21).
Openpay CEO, Michael Eidel commented, “The June quarter was perhaps the most pivotal for Openpay since we announced our US launch in December. Headlining the quarter was our acquisition of leading UK BNPL Auto provider, Payment Assist. The combination of their strong, profitable franchise in Auto with our organic launch in Healthcare in June creates a formidable player in the UK BNPL market with significant growth synergies.
“We are putting the finishing touches on our launch into the US market, targeting go-live in our key Healthcare vertical in early October 2021. This will present another major step forward for Openpay and the first of many very significant commercial opportunities for Opy USA.
“These landmark organic and inorganic achievements provide the market with even more clarity into Openpay’s strategic focus on specialised verticals and highlight our strong global growth and path to profitability.”
With the strong progress in the UK and USA, Openpay’s first two overseas markets, Openpay is consolidating in its strategy to truly focus on verticals where its longer, larger and customised plans make a true difference and provide a significantly differentiated offering from most providers who predominantly focus on ‘pay-in-4’.
Active Plans increased 141% vs pcp and 16% QoQ – reaching 2.0m, driven by the continued recovery of bricks and mortar growth rates in Openpay’s specialised verticals (particularly Healthcare and Automotive). Openpay’s plan mix is comparatively longer-term and higher value with 90% of TTV from plans three months or longer during Q4 FY21.
An Active Customer growth rate of 69% vs pcp was achieved at an aggregate level across all merchant verticals, and Openpay finished the quarter with 541k Active Customers. 51% of Active Customers were from the UK. Strong customer engagement and awareness led to the highest-ever percentage of plans being held by repeat customers at 84%, with more than every second customer holding multiple concurrent plans.
Overall, Active Merchants grew by 77% vs pcp to 3.8k as at Q4 FY21 and by 11% QoQ, helped by Openpay’s automated Merchant onboarding system. New integrations with eCommerce platforms and point of sale provider partnerships also contributed to the strongest y-o-y growth in number of Active Merchants on record.
Team changes to drive strategy on global and local levels
A catalyst for success is having the organisational structure in place to deliver with strong local teams on Openpay’s global strategy. Several team moves have been put in place to support Openpay’s strong continued business growth and advance its global mission of ‘changing the way people pay, for the better’.
Michael Eidel remains the company’s Group CEO, leading on global strategic execution as the Company continues to expand in Australia/New Zealand and push into UK and US.
Dion Appel has been appointed CEO ANZ, stepping up from Chief Commercial Officer to assume the responsibility for the Australia and New Zealand business, driving growth, innovation and partnerships within the region.
Ed Bunting has been appointed new Group Chief Operating Officer (and will also continue as General Counsel and Company Secretary), and Theresa Abela has been appointed Chief Risk & Compliance Officer.
