Australian fintech and innovative payment plan provider Payright today announced its first international venture, extending its buy now, pay later service into New Zealand. Top brands including Saladmaster, Amway and Nutrimetics already on the platform in Australia will offer Payright in New Zealand, along with a number of photography studios. Other Payright Australian merchant partners with a New Zealand presence will follow in the comings weeks and months.
Established by brothers Piers Redward and Myles Redward, Payright enables merchants to accelerate return-on-effort by offering a buy now, pay later flexible payment option to their customers, making higher price point products and services –transactions typically around $1,000 and up to $20,000 – more affordable by spreading the cost of purchases over time, without ever paying interest. Merchants are paid upfront and in full on the same day and Payright manages the customer’s repayments. Average transaction size is ~$2,500 and terms can vary from two months to 36 months.
Why is Payright expanding to New Zealand?
Co-founder and joint CEO of Payright Myles Redward said there was a clear growth in the buy now, pay later space across the New Zealand market.
“We are excited to introduce Payright to New Zealand merchants and consumers and our expansion into New Zealand is a natural extension into a market with an appetite for flexible and affordable payment options. Like Australia, there is an untapped opportunity in New Zealand to provide a buy now, pay later instalment payment plan for considered purchases up to $20,000, particularly for underserviced sectors such as home improvement, photography, dental and health and beauty – this is the gap we have identified in the market and one that we intend to continue to fill.
Piers Redward, co-founder and joint CEO of Payright, said, “We are seeing an increasing societal trend for spreading the cost of purchases and living expenses – consumers are moving away from credit cards with high fees and embracing more cost effective services such as buy now, pay later. We have also conducted extensive research around consumer spending patterns and the trend towards buy now, pay later as a form of payment rather than traditional payment methods such as cash and credit cards is on the rise – we expect that trend will continue into the future.”
While buy now, pay later services have been more commonly associated with retailers selling items such as fashion, appliances and electronics, Payright is developing the buy now, pay later category in the services market – a largely untapped space. Small to mid-sized, as well as larger merchants, including plumbers, photographers, dentists and beauty therapists now have the ability to offer a buy now, pay later flexible payment option to their customers through the Payright platform.
New figures released from Payright found the top three merchant categories – photography (33%), health and beauty (26%), and home improvement (14%) – were most popular among Australian customers, indicating that consumers prefer to divide the cost of bigger ticket items into smaller, more manageable instalments to fit within budgets. The average loan amounts within these categories ranged from around $8,000 for home improvement, $2,000 for photography, and $1,200 for health and beauty.
Payright is more prevalent amongst mature Millennials 25-34 (29%), Generation Xers 35-44 (23%) and youthful Baby Boomers 45-54 (18%). The majority of women (68%) favoured Payright over men (31%), suggesting that women are more likely to use buy now, pay later services and that women still dominate purchasing decisions in the household, including home improvement.
With merchant awareness and consumer confidence in alternative payments at an all-time high, Payright is well placed to capitalise on new merchant opportunities, particularly within niche services-based businesses, as well as retail. The buy now, pay later space is growing exponentially – the opportunity is close to $320 billion in retail alone, and only a very small portion of this market is currently being serviced by other players in the market. This provides Payright with a significant opportunity to scale.
The New Zealand expansion follows rapid growth in the Australian market. In its first three years of lending, Payright has gained over 28,000 customers, acquired over 1,600 merchants and written 22,000 plans totalling approximately AU$68 million. The company has grown quite quickly in a short amount of time with a period of substantial growth of near-doubling of revenue quarter-on-quarter over the last 18 months – achieving a revenue compound annual growth rate (CAGR) of 517% and compound monthly growth rate (CMGR) of 15%. The Payright team has also expanded from three people to over 60, including a dedicated sales, technology and integration team, operations and finance teams.
Founded with the vision of changing the way customers pay for their products and services, Payright is delivering the choice and flexibility that consumers want in the way they shop and pay with a responsible lending approach, as well as supporting Australian and New Zealand business and retail by helping to generate additional sales.