BNPL provider Openpay (ASX:OPY) has forecast its addressable market for its B2B trade accounts platform OpyPro could be valued at more than $200 billion in Australia alone.

Openpay this week announced a deal to deliver OpyPro to global information technology giant HP. The agreement is for an initial two years with an option to be extended for a further two years.

OpyPro manages trade accounts end-to-end, including account application processing, business onboarding, credit checks and terms, approvals, and account management.

It’s the second major contract win for Openpay, after launching its flagship B2B solution with its initial customer Woolworths Group (ASX:WOW) in September 2020.

The OpyPro platform now services more than 5000 business customers with growth of a further 2000 businesses expected over the next year.
 

Demand for OpyPro forecast to grow in lucrative market

Openpay’s CEO for Australia and New Zealand, Dion Appel, told Stockhead their ability to attract companies like HP reinforces the value of the OpyPro B2B solution.

“Strategically it’s important to Openpay because it’s demonstrating how we’re thinking about business differently to other players who are focused solely on the BNPL space,” Appel said.

“This B2B product suite has a runway in its own right that is larger in market size than consumer payments.

“OpyPro is capital light, making it a highly value accretive contributor to our pathway to mid-term profitability.”
 

Working with Lumi a highlight of HP deal

HP’s 30-day credit term funding for business buyers in Australia will be provided by fintech lending platform Lumi, enabling OpyPro to operate as a capital-light SaaS-based product.

Openpay Group CEO Michael Eidel said one of the highlights of the HP deal is putting its relationship with Lumi into action for the first time.

“Lumi’s financial expertise in business assessment and financing is being integrated into OpyPro to power a seamless credit limit assignment and transaction experience for businesses,” Eidel said.

Lumi CEO Yanir Yakutiel said the partnership with Openpay and HP was significant as the company continues to fill a market niche in small business lending.

“We are extremely excited about our partnership with Openpay and HP as this is something that we have been working on with Openpay in the background for several months and it is always exciting when something that started as an idea comes to life,” Yakutiel said.

“The rollout is the first of many and we are looking forward to announcing more partnerships in the weeks and months ahead.”

Shares in Openpay continue to rise today bolstered by the HP announcement, trading at $1.36.

Read MoreBuy Now Pay Later - BNPL

Featured Companies

You might be interested in