Openpay

About Openpay

Openpay Group Ltd was an Australian financial technology company founded in 2013 by Yaniv Meydan and Richard Broome. The firm operated in the Buy Now, Pay Later (BNPL) sector, providing a platform for customers to make interest-free installment payments for purchases. Revenue was generated from fees charged to both merchants and customers for using the payment platform.

Unlike some competitors that focused on smaller retail transactions, Openpay targeted higher-value purchases and specialized in sectors such as automotive, healthcare, home improvement, and education. The company's B2C product allowed for repayment plans of up to 24 months for purchases up to $20,000. In 2019, the company expanded its offerings with OpyPro, a B2B Software-as-a-Service (SaaS) solution designed to help businesses manage trade accounts and receivables.

The company listed on the Australian Securities Exchange (ASX) in December 2019, raising $50 million. At its peak in August 2020, its stock price reached over $3.28. Openpay expanded internationally into the United Kingdom and the United States but was forced to exit both markets in 2022 due to significant cash burn. Despite reporting record quarterly revenues shortly before its collapse, the company was burning through cash at an unsustainable rate, with a negative operating cash flow of $18.2 million in its final reported quarter. In February 2023, after failing to secure necessary funding, Openpay entered receivership, ceasing all new transactions and laying off a significant portion of its staff. The company was placed into voluntary liquidation in November 2023, owing over $66.1 million to creditors. The OpyPro B2B platform was sold to a related company for $10 million in July 2023.