At the time of writing, the Openpay Group Ltd (ASX: OPY) share price is up 16% to $3.77 after the company released an announcement advising it has formed a partnership with MSL Solutions Ltd (ASX: MSL).
What was in the announcement?
According to the announcement, Openpay signed a partnership with MSL Solutions that will allow customers to use Openpay when buying MSL’s golf and membership products. Member subscribers will be able to pay membership fees using Openpay’s platform.
The agreement will initially run for 3 years and Openpay’s partners will be excluded from offering buy now, pay later (BNPL) services to MSL’s customers in Australia.
Openpay’s agreement with MSL Solutions involves revenue sharing and Openpay will pay MSL an annual rebate of fees paid to Openpay by customers each year.
Openpay Chief Commercial Officer, Dion Appel stated;
“Openpay prides itself on creating partnerships that support our customer network; merchants and in this case, members. MSL is one of the leaders in the golfing and hospitality industry. We are proud to announce this exclusive partnership that will enable a smarter way for hundreds of gold 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.”
About the Openpay share price
Openpay is a BNPL provider that offers services in Australia, New Zealand and the United Kingdom. The company partners with merchants to offer its payment platform in stores, in apps and online.
In July, Openpay announced a partnership with 1st Group Ltd (ASX: 1ST) to make its platform available to patients of medical practices within the MyHealth1st network. This partnership also included a revenue sharing agreement.
In the final quarter of the 2020 financial year, Openpay announced record growth with active customers up 141% relative to the prior corresponding period . The number of active merchants was also up 52% relative to the prior corresponding period. Openpay had total transactions of $62.6 million during the June quarter.
At 30 June, Openpay had $70,059,000 cash versus $45,559 at the end of the previous quarter.
The Openpay share price is up 1078% since its 52 week low of 32 cents. It has returned 204% since the beginning of the year. The Openpay share price is up 183% since this time last year.
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Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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