Finance & Economics

BNPL Firm Openpay Falls Into Receivership

The Australian operator BNPL Openpay declared bankruptcy a few days after reports of a record quarterly profit.

BNPL Firm Openpay Falls Into Receivership

Source: Pixabay.com

Due to the declaration of bankruptcy, this operator dismissed 80 employees. Another 60 workers continue to collect payments and manage the Openpay B2B division.

Openpay shares were suspended on the ASX last week. This happened on the eve of the appointment of recipients, who now control the assets, operations, and trading activities of the company.

The platform was closed to new customers. But users who have previously interacted with the operator are forced to continue paying for outstanding obligations.

The company’s record quarterly revenue, which became known earlier in February, amounted to $ 10.1 million. The total value of the firm’s transactions showed growth. The operator’s active plans increased in scale. The number of the company’s clients also increased.

Recipients are working on the sale of assets, including the Openpay technology platform. Other fintech firms have expressed their interest in acquiring these assets.

The recipients started the sale process after Openpay failed to receive the financing requested in accordance with the usage notice filed under the company’s working capital program with AH Meydan Pty Ltd.

BNPL players are currently fully feeling the consequences of decisions to raise interest rates and are facing negative phenomena that are the result of the global economic downturn.

Openpay sent significant amounts of funding to enter the UK and US markets, but last year, due to the pressure of some external factors and the deterioration of the overall financial situation, it was forced to make a decision to cease operations in these countries.

Openpay was created by Yaniv Meydan and Richard Broom in 2013. Unlike other B2B firms, this company has concentrated its efforts and resources on managing cash flows for large purchases in areas such as healthcare, automotive, and home improvement.

As we have reported earlier, Crypto Broker Genesis Prepares to File for Bankruptcy.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.