The Openpay Group Ltd (ASX: OPY) share price is up after the buy now, pay later business released an August 2020 update.
August 2020 update
Openpay announced record growth in August 2020.
Total transaction value (TTV) increased by 88% to $22.7 million. Openpay revenue jumped by 63% to $2 million.
Net bad debts as a percentage of TTV remained relatively stable at 1.53%.
Active customers grew by 147% to 359,000 people with the number of active plans growing by 237% to 986,000. The number of active merchants grew by 40% to 2,250.
Openpay said the plan mix is strongly skewed to comparatively longer term and higher value plans. Plans of 3 months or longer accounted for 91% of TTV at the end of FY20.
The company boasted of significant merchant wins in Australia with veterinary software provider ezyVet and the launch of JD Sports Australia, complementing existing UK partnerships.
In the UK it has signed with global e-commerce technology group and brand owner The Hut Group, and Shopto and Fulham Football Club as a result of its partnership with Retail & Sports Systems.
The launch of ‘Openpay for Business’ with Woolworths is expected to start in September with a gradual roll-out planned over the next few months.
Openpay CEO Michael Eidel said: “Openpay has continued its robust start to FY21 with strong growth across leading indicators again in August, despite ongoing macroeconomic uncertainty and continued stage 4 restrictions in Victoria. We have continued to closely support merchants and customers affected by the lockdown and have ensured that our staff continue to operate safely from home. As consumers continued to seek better ways to structure purchase across their lifestyle needs, we again saw a strong surge in new customers and plans during August.”
Openpay is demonstrating strong growth just like the other buy now, pay later operators. I’m not sure if any of them are a buy, including Openpay. How much profit can they make? Can all of them succeed? We’ll have to see.