Openpay Pty Ltd is the latest buy-now, pay-later (BNPL) provider that seeks to list on ASX, with investor meetings scheduled for next week. Second L & # 39; Australian, Openpay is trying to raise about $ 50 million through the listing, giving it a market value of $ 150 million.
With a growing customer base in Australia and the United Kingdom, Openpay would join the likes of Afterpay Touch Group Ltd (ASX: APT), Sezzle Inc (ASX: SZL), Zip Co Ltd (ASX: Z1P) e Splitit Ltd (ASX: SPT) as BNPL provider listed in ASX.
Openpay has over 1,700 merchants and 310,000 customer payment plans on its books, numbers that have increased by 100% year on year for 3 years.
Openpay offers repayment plans for amounts up to $ 20,000 that last up to 24 months in the retail, healthcare, home and automotive sectors. As a result, its customers tend to be a little older than those of other purchases that subsequently pay suppliers, with higher transaction values.
According to CEO Michael Eidel, Openpay is not primarily a source of financing or credit for customers. Instead, he insists, the platform is "more a tool to iron out cash flow and a budget tool for people who make their money." . . . we are not a tool for someone who may need some money until the next salary payment ".
The BNPL sector is the booming sector in Australia, with UBS estimate This year, Australians will spend $ 7 billion through BNPL services. By 2021 this figure should reach $ 12 billion. However, some splendor has left the sector, since the specter of increasing regulation has been raised.
The afterpay shares fell by 18% compared to October as a result of UBS's negative coverage. This was followed by a Reserve Bank of Australia announcement that he would investigate the opportunity to take political action to strike the "no-charge" rule applied against traders by Afterpay and its peers.
Despite the regulatory concerns, BNPL shares recorded an overall positive trend in 2019 – Afterpay increased by 115% to 26.77, Zip increased by 256% to $ 3.92, Splitit increased by 152% to 96 cents from the January listing and Sezzle increased by more than 5% since its July listing.
Openpay may be a little late for the BNPL listing party, but there is no doubt that the sector was popular in 2019. It remains to be seen whether investors have an appetite for another BNPL provider.
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Kate O & # 39; Brien has no position in any of the stocks mentioned. Motley Fool The parent company Motley Fool Holdings Inc. in Australia owns shares in AFTERPAY T FPO and ZIPCOLTD FPO. Motley Fool Australia has recommended Sezzle Inc. Perhaps all fools have the same opinions, but we all believe that considering a wide range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains only general investment recommendations (based on AFSL 400691). Authorized by Scott Phillips.