Here’s why this BNPL provider’s shares are charging higher…
The post Openpay (ASX:OPY) share price up 5% on Kogan and Nissan deals appeared first on The Motley Fool Australia. –
The Openpay Group Ltd (ASX: OPY) share price is charging higher on Thursday morning.
At the time of writing, the buy now pay later (BNPL) provider’s shares are up over 5% to $1.34.
However, despite this gain, the Openpay share price is still down a disappointing 43% in 2021.
Why is the Openpay share price charging higher?
Investors have been bidding the Openpay share price higher today after it announced two new customer agreements.
According to the release, the company is leveraging its existing relationship with Kogan.com Ltd (ASX: KGN) in the business to customer (B2C) space to secure a new OpyPro business to business (B2B) enterprise contract win.
The release notes that OpyPro will integrate with Kogan’s ecommerce systems to deliver an enhanced and simplified buying and transaction experience for business customers.
In addition, it notes that OpyPro’s funding partner Lumi will provide credit to Kogan’s business customers.
Openpay’s CEO and Managing Director, Michael Eidel, commented: “We are thrilled to have added Kogan.com to our growing list of B2B customers. This deal demonstrates strong demand from businesses for an easier and more efficient payment experience. Credit term funding for business buyers in Australia will be provided by OpyPro’s funding partner, Lumi, enabling OpyPro to operate as a capital-light, SaaS-based product.”
What else was announced?
Also giving the Openpay share price a lift was news that the company has signed an agreement with Nissan Australia.
The release explains that Nissan Australia will work with its dealership network to increase the availability and use of Openpay’s consumer payment offerings among its 188 network dealerships.
The agreement includes marketing campaigns to drive new customer growth and targeted communication to Nissan Australia’s existing customer base.
Openpay’s ANZ CEO, Dion Appel, said: “We are excited to have signed with Nissan as a new customer in the Automotive vertical, further enhancing our leadership position. Through this partnership, we can help give Nissan’s customers greater payment flexibility and options for the automotive servicing needs.”
This deal follows recently announced agreements with Ford Australia, Pentana Solutions, Dunlop Super Dealers, DC Motor Group, Norris Motor Group, Thomson Motor Group, Janrule Group and Goodyear Autocare.
Management notes that the agreement delivers on its strategy of becoming a leader in its chosen verticals, primed for longer, larger and customised payment plans with healthy revenue yield.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.