1st Group and Openpay join forces on BNPL for healthcare

People are now looking to use buy now, pay later (BNPL) platforms for medical services and one small cap stock wants to capitalise.

Telehealth stock 1st Group (ASX:1ST) has unveiled a deal so its patients can use BNPL player Openpay (ASX:OPY) to pay their bills, sending the stock up +60 per cent in early trade.

1st Group’s has a digital platform connecting doctors and patients. Its capabilities include but are not limited to an online directory of telehealth clinics and an appointment booking service.

Openpay is not the only buy now, pay later stock on the ASX but it sees itself as unique because customers are typically older and use it as a budget tool to spread out payments for large purchases like furniture and car repairs.

“Patients & consumers want it”

1st Group managing director Klaus Bartosch said BNPL has been an increasingly popular option to pay for healthcare since COVID-19.

“As a result of COVID-19 and the economic situation that the country is in, people are likely to be leaning more on buy now, pay later services for important healthcare,” he told Stockhead.

“If you look across the healthcare industry today, optometrists, dentists, vets and pharmacies are using Afterpay (ASX:APT), Openpay (ASX:OPY) and Zip Co (ASX:Z1P) already to support their businesses because patients and consumers are wanting it.

“It makes complete sense that an organisation like Openpay would be leveraging our significant network and platform to help drive increased awareness of their payment option to patients of our customers.

“I’m pretty confident it will have a really positive impact on our customers’ businesses and ultimately benefit Openpay and ourselves.”

1st Group shares sit over 60 per cent higher in early trade. Meanwhile, Openpay shares sat slightly lower as it unveiled its quarterly.