The Openpay Group Ltd (ASX: OPY) share price is on watch after it has expanded its partnership with Kogan.com Ltd (ASX: KGN).
Openpay captures Kogan’s business customers
Openpay said that it has expanded its buy now, pay later (BNPL) relationship with Kogan. The new deal will see Kogan offering Openpay’s business to business (B2B) product called OpyPro.
This means that Kogan is offering Openpay products for both business to customer (B2C) and business to business.
Openpay said that its OpyPro platform is now servicing over 7,000 business customers and it expects this to grow by a further 6,000 customers over the next year.
Openpay CEO and Managing Director Michael Eidel said: “This deal demonstrates strong demand from businesses for an easier and more efficient payment experience. Credit term funding for business buyers in Australia will be provided by OpyPro’s funding partner, Lumi, enabling OpyPro to operate as a capital-light, SaaS-based [software as a service] product.”
B2B is a key market
Openpay has been making progress with its OpyPro B2B platform with other recent partnerships with HP Inc, Woolworths Group Ltd (ASX: WOW) and Kyriba.
The company said that is has an opportunity to become a “provider of choice” in the multi-trillion dollar Australian and international markets for B2B payments.
This could be key in setting a point of difference for the Openpay share price compared to other BNPL providers.
Nissan signs on with Openpay
The company also announced a partnership with automotive brand Nissan Australia. Openpay’s B2C payment offerings will be added to Nissan’s network of 188 dealerships.
Management said that the deal includes marketing campaigns to drive new customer growth and targeted communication to Nissan Australia’s existing customer base.
Final thoughts on Openpay and the share price
There are so many BNPL providers and big players like Commonwealth Bank of Australia (ASX: CBA) are starting to enter the ring. It’s hard to see how all of these BNPL operators can continue to grow and make profits over the longer term.
I think it is a smart move to see a gap in the market and move towards B2B customers. This could give Openpay a point of difference and a chance to stick around once the BNPL excitement settles.
The Openpay share price is up 1.5% at the time of writing and has risen 5.7% over the last 5 days. However, over the past six months it is down 49%.
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