The Openpay Group Ltd (ASX: OPY) share price is charging higher today on news it has inked a deal with a new strategic partner.
Openpay is a small-cap buy now, pay later (BNPL) provider that has more than 319,000 active customers and 2,162 active merchants across Australia, New Zealand and the UK. Some leading merchants that offer Openpay include Bunnings, Bupa, Pet Stock and UltraTune.
What’s the deal?
Openpay has signed a revenue-sharing agreement with MSL Solutions Ltd (ASX: MSL), a micro-cap software-as-a-service provider that operates in the sports, leisure and hospitality sectors. MSL creates systems that connect departments of a business, from point of sale and membership to marketing, customer engagement, and revenue.
The deal will see MSL integrate Openpay’s BNPL offering with its golf and membership products in Australia. This will allow participating golf clubs to include Openpay’s BNPL plans as a payment option for member subscription fees, while enhancing golf clubs’ operating cashflows.
The agreement will run for an initial 3-year term and Openpay will pay for the platform functionality to be established. The two companies have agreed to revenue-sharing terms which will see Openpay pay MSL an annual rebate of fees each year.
Management commentary
Commenting on the new partnership, Openpay Chief Commercial Officer, Dion Appel, said:
“We are proud to announce this exclusive partnership that will enable a smarter way for hundreds of golf clubs on MSL’s platform to offer Openpay’s buy now, pay later for the purchase of golf memberships.”
“MSL has been an innovator in the golfing industry and we are pleased to have been selected to further solidify its position as an industry leader.”
Now what?
This is Openpay’s second strategic partnership to be announced in recent weeks. In mid-July, the company signed a 3-year, revenue-sharing agreement with 1st Group Ltd (ASX: 1ST), a digital health group that connects consumers to a variety of healthcare services.
At the time of writing, the Openpay share price has surged 10.77% higher to $3.60, taking year-to-date share price gains to 188%. With a financial year ending 30 June, Openpay is set to report its FY20 results this month.
In the meantime, in other news in the ASX BNPL space, rival Splitit Ltd (ASX: SPT) is preparing to launch a capital raising.
