Simple, transparent, interest-free BNPL

Opy USA Inc. is the U.S. division of Openpay Group Ltd., a publicly traded buy now, pay later (BNPL) B2B and B2C fintech company based in Melbourne, Australia. The company's flagship technology platform enables business owners to offer flexible installment plans. Healthcare providers, automotive service and repair dealers, home improvement centers, educational firms and big-ticket retailers use the platform, company representatives stated.

Following successful rollouts in Australian and UK markets, Openpay launched Opy USA in December 2020, designed to disrupt traditional BNPL with a cost-effective alternative to credit, debit and cash purchases. Opy's transparent, interest-free "buy now, pay smarter" solution offers longer terms and higher limits for purchases that exceed consumer budgets, noted Brian Shniderman, chief executive officer at Opy USA and global chief strategy officer at Openpay.

"With lending terms up to 24 months and limits of up to $20,000, Opy is a differentiated BNPL solution in the market that gives consumers a greater range of payment options," Shniderman said. "Opy operates without surprises and offers a simple, fair, and transparent flat fee per installment. It is designed for life altering situations that require larger limits, helping consumers to manage their cash flow without exorbitant interest rates."

Flexibility, transparency

Shniderman went on to say that Opy provides flexibility and transparency with no surprises such as accrued interest that becomes due if a consumer accidentally misses a payment. The company's late fees are fair and reasonable, he noted, ranging from $7 to $14 dollars, depending on loan size. Terms are clear, concise, understandable and compliant, and when rates are represented as an effective APR, they are lower than loans of similar size and duration, he added.

Having seen BNPL providers charge exorbitant penalties and back interest for missed payments, Shniderman was determined to build a more supportive, customer-centric business model. Opy never charges interest—even if a payment is late, he stated.

"Opy is focused less on the momentary transaction and more on the relationship, which provides a greater range of meaningful financing opportunities," Shniderman said. "Opy's next-generation approach, which is designed for merchants, by merchants, fairly shares costs and rewards amongst merchants, consumers, and providers."

Building trusted partnerships

While Opy is relatively new to the U.S. market, Shniderman is leveraging his experience, leadership and network from previous wide-scale implementations in banking, fintech and financial services, according to company representatives. Four newly tapped senior vice presidents are leading efforts in home improvement, healthcare, automotive and education verticals. Business unit leaders are exploring pilots and acquisition opportunities with a variety of vertically focused companies, the company stated.

Shniderman pointed out that Opy's OpyPay solution benefits merchants by increasing average order value, total transaction volume and customer lifetime profitability. Referral partners, who include ISOs, ISVs and merchant level salespeople, can create stickiness by offering a product with higher limits and longer repayment terms, he stated.

As BNPL continues to scale globally, Opy will continue to work with industries that surround life-changing events by partnering with large aggregators to access massive merchant populations within targeted verticals, Shniderman noted. By focusing on financially mature consumers who face high-ticket expenses, whether it's a root canal or a leaky faucet, Opy aims to solve problems and empower customers to be smarter with their finances and cash management. Ultimately, the goal is to change the way people pay for the better, he stated.

"The U.S. payment landscape is going through a tectonic change, and Opy is bringing in fairness, transparency, and flexibility to merchants and consumers alike by building payment solutions consumers crave," Shniderman said. "By defining the future of payments and disrupting incumbents, we're designing Opy from the ground up and paving the way for the next generation of buy now, pay later solutions.

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