Home Articles Openpay launches shop now, pay later service; opens $8m-10m pre-IPO cap raise

Openpay launches shop now, pay later service; opens $8m-10m pre-IPO cap raise


Fintech payments company, Openpay has launched an interest free, shop now, pay later service for online and in store purchases across a broad range of lifestyle categories including retail, medical, automotive and home improvement.

The payment service is the first FinTech in Australia to offer higher credit limits of up to $10,000 and longer payment terms of up to 24 months.

Openpay is a new FinTech born out of in-store, representing the consolidation of Evoke AutoPay, Jam Payments and other white label solutions, with the technology evolved over four years to bring a complete in-store and online payment solution across many lifestyle industries.

For shoppers, Openpay offers a flexible, interest free payment alternative with the ability to spread payments across many months. This is especially attractive for unexpected bigger ticket items such as dental, car service or high-end fashion.

For retailers, Openpay streamlines transactions and guarantees cash flow, at the same time as delivering actionable customer insights. Openpay is already seeing retailers experiencing significant growth in both average transaction value (up to 300%) and repeat customers (65% repeat customers).

Already citing over 200 independent national retailers including Nike, Anaconda, House and Shaver Shop, Openpay is seeking to raise $8-10 million in capital from private investors in preparation for potential IPO in 2017.

Who are the people behind Openpay?

Joining Openpay as CEO is Simon Scalzo, previously Board Member, Partner at BDO and Head of their national retail practice. Having previously founded the Evoke AutoPay business Simon brings extensive retail and finance experience to steer Openpay’s growth.

Openpay has also attracted the support of some of APAC’s leading technology executives who join its Advisory Committee including Neal French, Head of Chrome & Android for Work – Google APAC & Japan; Kel Purser, previously General Manager of Merchandise at Target; Don Fraser, founding Executive Director of Safeway in Australia; Harriet Wakelam, Director Human Centred Design at IAG with previous experience at NAB and some of the UK’s biggest banks; and Stephen Borg, Global CDO AOPEN Group.

The Advisory Committee will play an instrumental role in advising on technical and commercial opportunities of the company’s plan and assist in continuing to evolve the product offering in the future.

Simon Scalzo, CEO, Openpay says, “We’ve put together a robust financial and management structure that we are confident can support our broader market strategy and penetration across industries which have significant potential growth.”

How exactly does Openpay work?

Openpay’s highly scalable and secure technology is fast, easy and paperless. Through its standalone software, customers use the Openpay app or the instore portal to make a purchase with payment transferred to the merchant the next business day, direct debited from the customer’s account. Openpay’s unique features such as beacon capabilities leveraged from Google Eddystone will help to drive significant outcomes.

“Even without downloading the app, customers will automatically be delivered notifications to make them aware that Openpay is available in store, straight to their smartphones.

“When you start to look at the impact of building customer awareness of payment options before the customer reaches the checkout, this is a very innovative way to reach a highly diverse and dispersed audience,” said Scalzo.

Openpay has also developed a sophisticated portal for merchants, enabling them to benchmark their store performance, down to an individual sales person.

With an addressable market of over $300 billion per year in the retail sector, Scalzo says there’s a compelling case for Openpay to extend its focus to additional growth sectors in automotive, healthcare and home improvements.

“This new funding will allow us to expand our offering in key growth areas and continue to build on our capabilities together with our advisory committee, to advance the business up until IPO in 2017,” he remarked.