Buy now pay later platform Openpay dropped 17 per cent on its first day listed on the ASX.
According to the Sydney Morning Herald, the stock fell from the issue price of $1.60 to $1.35 half an hour after listing. It finished on Monday down 17.5 per cent at $1.32.
Michael Eidel, CEO and managing director at Openpay told the SMH, he is confident investors will see the “long-term value in BNPL”.
Openpay raised $50 million for its IPO supported by institutional and retail investors. The company originally provided services to customers in Australia and New Zealand and recently opened its doors in the UK.
The Afterpay competitor provides flexible payment solutions to customers for small to big ticket items between $50 to $20,000. Its offering also facilitates increased transaction values and conversion rates for merchants at checkout.
The proceeds from the IPO will be primarily used to support Openpay’s growth strategies, including working capital to underpin the company’s target business plans as well as continued investment into increasing the company’s addressable market through product development, talent acquisition and continued UK expansion, continued enhancement of its technology platform and decisioning tool and receivables growth through increased access to equity funding.
Eidel said, “The strong support from investors is testament to the strength of the opportunity we see ahead of us. We thank all those long term and new shareholders who have invested in our business.”
He noted with the company’s ‘buy now, pay smarter’ approach, they have seen strong growth in Australia.
“Listing on the ASX reinforces our commitment to strong regulation and governance and provides a great opportunity for investors to participate in what we see as a fast-growing, globally relevant Australian company.”
Latitude and Mastercard
Financial payments company Latitude has also expanded its buy now pay later offerings partnering with Mastercard to allow its LatitudePay customers to use BNPL anywhere Mastercard is accepted.
This new offering will launch in 2020.
LatitudePay is Latitude’s BNPL payments platform, enabling customers to pay for purchases over 10 interest-free payments.
Other features include simplified payments, giving customers the ability to group multiple purchases into one simple payment plan.
Latitude said every consumer undergoes a credit and ID check as part of its ongoing commitment to acting responsibly.
Ahmed Fahour, managing director and CEO at Latitude Financial said, “We are excited to expand our partnership with Mastercard, one of the most respected global brands, to innovate in buy now pay later and develop other products that will benefit Latitude customers.
“This is the next evolution of the BNPL industry and will enable consumers to pay for their purchases using LatitudePay at any of the nearly 53 million merchants that accept Mastercard worldwide.”
Ajay Banga, president and CEO of Mastercard said, “Everyone wants a seamless shopping experience. This partnership lets us provide that and more – we’re building the foundation for people to choose to pay in the way they want, when and where they want, knowing each time it’s going to be simple safe and secure.”