Openpay

Buy now, pay later company Openpay has entered receivership and shut its platform after it was voluntarily suspended from the Australian Securities Exchange ...

Net cash from operating activities was negative $18.2 million in the December quarter, and $38 million in the red over the last two quarters. Openpay is a platform through which customers can pay for purchases from the company’s partnered merchants in instalments, paying a fee to do so. However, Openpay’s cash balance signalled grave underlying issues with the business. The Melbourne-based company’s non-executive director, Yaniv Meydan, resigned on Friday. That left the company with cash and cash equivalents of $17 million at the end of the period, and $41 million in unused financing. Securities in Openpay were trading at 20 cents a share when it was placed in trading halt last Wednesday and will remain suspended while the company’s strategy is assessed.

Advisory and restructuring firm McGrath Nicol has been called in to work with Openpay's employees, merchants and customers to urgently determine the best ...

It reported a statutory net loss of A$82.5m in the year to June 2022. The warning was issued under the 2009 AML/CFT Act, which aims to protect NZ’s international reputation and public confidence in the finance system by setting up a system to detect and deter money laundering and the financing of terrorism. [Laybuy Group Holdings went into a trading halt](https://www.nzherald.co.nz/business/laybuy-shares-go-into-trading-halt/LX7FXW4MUZEI7DECZSCVA2BKHE/) at the request of the company as it looks to de-list from the Australian stock exchange. New Zealand’s Department of Internal Affairs (Te Tari Taiwhenua) said Openpay was not alleged to be involved in money laundering or the financing of terrorism, but the company “failed to establish, implement, and maintain an AML/CFT programme, and failed to adequately monitor accounts and transactions over an extensive period”. The receivers are now in control of all the company’s assets, operations and trading activities, according to an ASX announcement. Openpay’s buy now pay later loans resulted in A$344 million (NZ$374.71) of transactions in Australia, New Zealand, the United Kingdom and the United States, in the last financial year, according to the company’s annual report.

McGrathNicol were appointed receivers to the company over the weekend, pursuant to the security held by OP Fiduciary. McGrathNicol partners Barry Kogan, ...

The company last traded at 20c a share, before being suspended on Friday, “pending a release of an announcement regarding its ongoing funding.” “It is expected that the shares in the company will continue to be suspended until further notice while the assessment of the appropriate strategy is ongoing. “A further announcement will be issued in this regard in due course.”

The payments platform has been shut down, effectively sealing the company's fate, with receivers McGrathNicol now in charge.

[Openpay listed on the ASX in December 2019](https://www.startupdaily.net/topic/openpay-asx-ipo/) at $1.60 per share, raising $50 million for a market capitalisation of $150 million. The business had deals with the likes of Officeworks, Kogan, Nissan and Ford Australia, targeting higher value purchases compared to rivals such as Zip and Afterpay. Of $152 million in financing facilities, Openpay had $41 million left to call on. It focused on the automotive, healthcare, retail, home improvement and education sectors offering B2C repayment plans over 2–24 months on transactions up to $20,000. Our improved revenue margins show that consumers and merchants are willing to pay for that extra value as the cost of living increases.” Separately, they were also appointed receivers of Openpay SPV Pty Ltd, and certain assets of Openpay Pty Ltd by Amal Security Services on February 3.

ASX dips. Wall Street ponders spectacular January labour market data as US unemployment hits multi-decade low. Openpay enters receivership.

The ASX 200 is about 1% shy of its all time record high. Does the labour data suggest the US Fed can pull off a soft landing? Unemployment is historically low. But is it? NCM rejected an earlier Newmont offer on grounds it did not deliver ‘sufficiently compelling value to Newcrest shareholders’. It was back-breaking work, and Hunt wanted more out of life. The risk would be for a larger move, rather than no move, in our view.” – You can’t run these businesses when interest rates go up. We’ve been hounded with headlines the US economy is headed for recession. McGrathNicol said customers will no longer be able to use Openpay for new purchases but any outstanding balances must be repaid. All these businesses run at a cashflow loss, the only reason they’ve been surviving – from Zip down – is by burning investor cash.”

Australian fintech OpenPay has become the first buy now, pay later (BNPL) service to collapse as the tech wreck continues to wreak havoc.

OpenPay had a number of different retailers including Bunnings, Bupa Dental, Glue Store, and Kogan.com. OpenPay paused when it was at 20c per share. “As inflation climbed and interest rates soared, share prices crumbled. And it’s sent the entire sector into meltdown. New purchases cannot be made through the platform. It followed OpenPay pausing trading on Wednesday in a sign that the company was on its last legs.

Australian buy now, pay later company OpenPay has gone under after a disastrous three months saw the company lose $18million.

Australian buy now, pay later company Openpay has gone under after a disastrous three months saw the company lose $18million The company had targeted customers making higher-valued transactions, including for healthcare services with Bupa Dental one of its retailers Australian buy now, pay later company Openpay has gone under after a disastrous three months saw the company lose $18million.

The ASX-listed company informed shareholders that Barry Kogan, Jonathan Henry and Rob Smith of McGrathNicol had been appointed as receivers of the business, ...

McGrathNicol said it will work closely with Openpay's employees, merchants and customers to "urgently determine the appropriate strategy for the business". In a quarterly update to the market in late January, Openpay told shareholders it had an active customer base of more than 347,000 users, servicing more than 4200 businesses. Customers will no longer be able to use Openpay for new purchases, but those with outstanding balances will still need to pay the remainder of their debt.

Australian Buy Now Pay Later (BNPL) company Openpay has collapsed, with the appointed receivers already making an “urgent assessment” of the business.

Just a day before, the BNPL service announced to the Australian Securities Exchange (ASX) that it was suspending its stocks. “Further information regarding the future of the assets will be communicated after the completion of our initial assessment.” “An urgent assessment of the assets under our control are underway and we will be working constructively with all stakeholders, to secure the best possible outcome,” Barry Kogan said.

The Australian fintech buy now, pay later (BNPL) company Openpay has entered receivership, resulting in the shut down of the platform. The company.

The company’s collapse is subject to its negative cash flow with its last two quarters in the red, reporting a further $38 million in losses in its third quarter in September 2022. But with the securities in Openpay trading at 20 cents per share, the Melbourne-based company’s non-executive director Yanic Meydan resigned following the losses. In 2022, Openpay was named Canstar’s ‘Outstanding Value – Buy Now Pay Later’ company. In a statement, the receivers announced: “The receivers and managers will work closely with Openpay’s employees, merchants and customers to urgently determine the appropriate strategy for the business.” [AfterPay](https://www.marketingmag.com.au/tech-data/square-buys-afterpay-in-a-a39-billion-deal/), the platform was created for customers to pay for purchases in instalments at partnering companies such as Bunnings, Beaurepaires, Repco and Kogan. The Australian fintech buy now, pay later (BNPL) company Openpay has entered receivership, resulting in the shut down of the platform.

On Monday, restructuring firm McGrathNicols announced it was tapped to handle Openpay's operations, with Barry Kogan, Jonathan Henry, and Rob Smith appointed as ...

[Australia's payment times watchdog says it will intensify its focus on big businesses in 2023, after the release of "concerning" data showing the average payment time to small businesses barely budged in 2022.](https://www.smartcompany.com.au/finance/cashflow/payment-times-regulator-report-small-business/) Openpay also significantly drew down on its financing facilities over the year: while the company estimated it had 16.5 quarters of funding available in January 2022, that dropped to just 3.2 in the latest report. Openpay’s receivership comes after a long string of interest rate hikes, which increase the cost of borrowing for fintechs, making it more expensive for them to offer ‘interest-free’ BNPL services to their customers. The trio will “work closely with Openpay’s employees, merchants, and customers to urgently determine the strategy for the business,” the firm said in a statement. “At this time, customers will no longer be able to use the Openpay platform for new purchases, but are still required to pay any outstanding balances in accordance with their existing agreements,” McGrathNicol added. [buy now, pay later (BNPL) player Openpay](https://www.smartcompany.com.au/startupsmart/news/bnpl-uk-afterpay-openpay-klarna-unfair-unclear-contract-terms/) has fallen into receivership, becoming the first major local player to buckle in 2023.