FY21 a ‘transformative year’ as Openpay signs deal with global solutions leader Kyriba
Link copied to
BNPL provider Openpay (ASX:OPY) has announced a deal with global cloud-based treasury management and payable solutions leader Kyriba as it moves to diversify into the lucrative B2B market with its trade accounts platform OpyPro.
The deal to introduce OpyPro for B2B payments to Kyriba clients to improve their working capital performance and strengthen customer relationships comes as Openpay released its FY21 results.
Described as a “transformative year” which has set up Openpay to become a diversified global payments fintech, active plans rose 141% to hit 2 million, active merchants rose 77% and active customers were up 69%.
Revenue was up 44% on pcp to $26 million. However, Net Transaction Loss was flat at 2.3% of TTV and Net Transaction Margin down 190 basis points to 0.6%.
In a crowded BNPL market Openpay is now positioning itself beyond its B2C offerings and origins to accelerate growth in the B2B sector in its key markets of Australia, New Zealand, the UK and US.
Kyriba and Openpay jointly identified Kyriba’s clients as highly likely to benefit from the OpyPro B2B SaaS solution based on their buyer management processes and spend profile.
Coupled with Kyriba’s enterprise liquidity management platform and working-capital solutions, OpyPro manages trade accounts end-to-end, including account application processing, business onboarding, credit checks and terms, approvals, and account management.
OpyPro together with Kyriba is being considered “as providing a critical advantage to optimise new customer acquisition at scale”.
Under the deal OpyPro will have access to over 2,000 enterprise clients globally and a pathway to significantly reduce acquisition costs with shorter sales cycles.
It’s the second major contract win announced by Openpay this week, with the company entering a deal to deliver OpyPro to global information technology giant HP.
Openpay’s flagship B2B solution was launched with its initial customer Woolworths Group (ASX:WOW) in September 2020.
The BNPL market is still processing the mega $40 billion share-based acquisition of Afterpay by tap-and-pay payment platform Square, run by Twitter CEO Jack Dorsey.
But Openpay managing director and Group CEO Michael Eidel told Stockhead consolidation within the ‘pay-in-4’ BNPL market was inevitable as it becomes increasingly overcrowded.
Eidel said Openpay was working hard to become a truly diversified global payments fintech and move beyond B2C BNPL offerings, adding different revenue streams to the mix, like its OpyPro B2B solution.
“FY21 was a transformative year for Openpay, with many significant strategic and operational achievements that set us up to achieve our objectives of sustainable growth and mid-term profitability,” he said.
“To accelerate growth as we move into FY22, Openpay continues to establish partnerships with major ecosystem providers and aggregators in our target verticals.
“These drive seamless integration with new merchants and customers at scale, for our longer, larger and more customised plans.”