Openpay to cease US operations
Buy now pay later (BNPL) group Openpay will pause its US operations indefinitely and cease loan originations on the Opy USA platform.
Its US workforce will be materially reduced, with a small skeleton team to continue for a short period to assist in the transition.
In January 2022, Openpay said it was looking to withdraw from the UK market and to find an investor in its US operations. It appointed US investment bank Keefe, Bruyette & Woods (KBW) to help with the search.
Despite advanced discussions with several potential investors, the company says it has decided to pause its US operations given the current macroeconomic and public market conditions.
Australia CEO Dion Appel says: “This decision to shift our approach in the US was not taken lightly but will now allow even greater focus on Openpay’s Australian business which continues to perform strongly in terms of growth (TTV, revenue, active plans, customers, merchants, etc) and metrics (gross margin, NTM, loss and arrears rates etc) as highlighted in our May trading update.
“This will also allow further focus on the capital-light OpyPro B2B business as it continues to move into a significant ramp-up phase. We remain incredibly proud of what Openpay and its dedicated team have achieved in the US since December 2021, and the Company will continue to look to leverage and monetise its investment in the US and the UK markets in the future.”