Shares in the ASX’s latest BNPL stock Payright (ASX:PYR) rose modestly following a financial update this morning.

The BNPL sector has expanded significantly in recent years, particularly since COVID-19 hit people’s hip pockets and companies entered new categories and markets.

The ASX’s players have all reported higher customer acquisition and more transactions and Payright has been no exception so far.

Across Australia and New Zealand Payright recorded $20.6 million in Gross Merchandise Value – 84 per cent higher than the June quarter.

Gross Merchandise Value is a common metric for BNPL companies; it is essentially the total of all sales across all accounts (both active and closed).

Payright’s total customers grew as well to 42,300 which was 25 per cent higher than the June quarter.

Payright has attempted to differentiate itself by claiming to specialise in “considered” purchases of higher value up to $20,000 and offering longer term payment plans.

This is similar to its BNPL peer Openpay (ASX:OPY).

Today the company and its co-CEOs Myles and Piers Redward reiterated this difference and expressed belief more growth was ahead.

Piers in particular claimed it would help Trans-Tasman businesses seeking a consistent BNPL solution across both countries.


Shares still below IPO price

Shares rose a modest 12 per cent to 95 cents by 10.45am (AEDT) but are still 20 per cent down from its $1.20 IPO price.

It is not the only BNPL IPO from 2020 to not see the exponential growth such as that experienced by established BNPL players like Afterpay (ASX:APT). Laybuy (ASX:LBY) has flatlined since debut and Zebit (ASX:ZBT) sits 30 per cent down.

Yet Afterpay (ASX:APT) has grown from $1 per share to $125 per share in less than five years while Zip Co (ASX:Z1P) has grown from 20 cents to $5.64.

As for the three other BNPL stocks which listed in 2019, Openpay (ASX:OPY) is up from $1.60 to $2.34 since listing, Sezzle (ASX:SZL) from $1.22 to $7.22 and Splitit (ASX:SPT) from 20 cents to $1.44.

Payright (ASX:PYR) share price chart