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open pay announced Achieved a new quarterly record in the second quarter of 2023, extending revenue to A$10.1 million. This is on top of his total trading volume (TTV) increasing by almost 50% to A$126 million compared to the last 12 months.
Dion Appelthe CEO of Openpay, is very pleased with the results and said:
This is a result of enduring consumer demand for differentiated offerings of longer, larger payment plans. It shows that you are willing to pay for that extra value.
However, the celebration was soon cut off. On February 3rd, Openpay requested removal from him. Australian Securities Exchange (ASX) “Regarding discussions with its funders.” This stopped trading and prevented new customers from purchasing. Although outstanding transactions still need to be completed.
No official reason has been given as to the reason for these discussions, but it is speculated that it is due to A$41 million unspent on financial facilities.
In Q4 2022, Openpay spent A$18 million with A$17 million remaining. If things continue on track, Openpay will only have one quarter of his life left before liquidation.
Unfortunately for Openpay, the woes continued.After suspension of trading, director Yaniv Meydan I resigned as a director. Three days later it was announced that the organization would become the trustee Barry Kogan, Jonathan Henry and Rob Smithpartner of the receiver McGrath Nicol appointed to oversee the proceedings.
Australian 7 news Mr Kogan said:
“Further information regarding the future of the asset will be communicated following the completion of the initial evaluation.”
When a well-known organization gets into trouble, it’s no wonder other companies get nervous. But are the concerns justified? It depends on their point of view.
Stuart Neal Former CCO of pay with banking appcommenting that: KlarnaFor example, it comes from Scandinavia, where bad debts are historically low and socially unacceptable.
National databases mean that consumer credit information is accurate and reliable, making decision making easier. In this case, there is greater protection against an impending credit crisis. I think so, but I have no immunity.”
While they may have some protection against credit crises, it cannot be said that BNPL organizations, especially those based in Australia, are not without difficulties at this time.
forgive HalversonCEO of a payments consultancy McLean Roche Pty Ltd be careful LinkedIn That fintech was fighting among them.
how he pointed out deferred payment sold to block “(It’s worth nothing now)”, hmm withdrew from BNPL to focus on unsecured lending, latitude, Zebit It was delisted from the ASX and “returned to the US with $35 million in cash.” And finally, Ray By NZ Plans to delist from ASX and try to keep cash Currently worth $9 million market capitalization.
Yes, but it can be difficult. But only because of the business model.
According to Openpay, Nandan Sheth, CEO of BNPL Company Split: When you lend to subprime consumers at very high amortization rates (sometimes 300-400 basis points amortization) and customer acquisition and marketing costs are very high, the path to profitability is: You will be challenged.
And there are concerns about bringing in new capital from new investors because they may not buy into the long-term story. A lot of deals you can get deals right away lenders come in and offer to restructure the company.
The challenges Sheth lists create hurdles right from the start. But taking a more proactive approach to the situation, Sham Pradeep,general manager Zogothe financial education platform said:
This gives start-ups a chance to disrupt the industry and become competitive leaders, but the bets they make to move forward can leave them in a precarious position. If a recession hits markets and companies, not all competitors will be able to weather the storm and some may go bankrupt or close.This is how Openpay is now It’s about the danger you’re facing, how to survive.
One of the major challenges BNPL companies face after bankruptcy is learning from their competitors mistakes and determining how to move forward while meeting customer needs in a sustainable and scalable manner. We must continue to innovate so that we can outpace rising inflation and declining customer spending in these economically turbulent times.The future depends on adaptability and fortunately, BNPL’s For a fintech like us, its a key feature of the industry.
So what’s next? For now, it’s the waiting game. The BNPL operator will remain closed while the receiver and manager will work closely with his Openpay employees, merchants and customers to urgently determine the appropriate strategy for the business, the receiver said in a statement. said in
Francis Bignell
