Openpay looks forward to further engaging on consumer protection with the FCA.
- Openpay has been working with the UK’s Financial Conduct Authority (FCA) to help ensure that any further regulatory measures for the BNPL sector help ensure consumer choice, product innovation and strong consumer protections
- Openpay is pleased to see recognition that BNPL can be a helpful way for consumers to manage their finances
- Openpay designs its products to be fair for consumers providing flexible plans with no hidden catches.
MELBOURNE Australia, 3 February 2021: ‘Buy now. Pay smarter.’ company, Openpay Group Ltd (ASX: OPY) (Openpay or the Company) welcomes the publication of the UK’s Financial Conduct Authority (FCA) Woolard Review and confirms that Openpay embraces modern and proportionate regulation in all markets. As outlined by Openpay prior to the FCA Woolard Review, Openpay is seeking to become authorised by the FCA to support Openpay’s growth ambitions, irrespective of whether regulations change. Accordingly, Openpay does not anticipate that any regulatory changes in the UK will have an adverse impact on Openpay’s financial performance.
As is the case in both Australia and NZ, Openpay has been at the forefront of efforts with its peers in the UK to help ensure products are designed to be suitable for customers (and merchants alike). Openpay has been (and will continue to be) working with the FCA to help ensure that any further regulatory changes help ensure consumer choice, product innovation and strong consumer protections.
Responsibility is at Openpay’s core.
Customer centricity and responsibility are core to Openpay’s business, and we ensure our products are designed to be beneficial and fair for consumers providing flexible plans with no hidden catches.
- Openpay’s UK plans are the most flexible in the market typically ranging from 2 – 6 months.
- Credit checks are performed for every customer in the UK.
- An initial deposit is taken at the time of purchase.
- Customers can re-/schedule payments in line with their pay cycle.
- Payment reminders are sent ahead of payment due dates.
- We never charge interest, and in the UK, Openpay plans are completely free for consumers when paid on time.
- Our late fees are capped, and we provide a late payment grace period.
- Openpay freezes accounts and no new plans can be taken out if an existing plan cannot be repaid.
- Openpay has a financial hardship program in place.
Openpay is one of the highest rated BNPL providers on Trustpilot in the UK*, and our target customers are typically finance-savvy and of an older demographic, using Openpay plans as a cashflow management tool.
CEO and Managing Director of Openpay, Michael Eidel commented, “Consumers and merchants are at the heart of what we do, and Openpay is committed to ensuring a fair and transparent playing field for all. We embrace appropriate regulatory oversight in all markets and look forward to further engaging with legislators and the FCA to ensure that the regulation protects consumers and fosters innovation and consumer choice. Openpay is pleased to see recognition that BNPL can be a helpful way for consumers to manage their finances.”
Openpay’s UK business continues to see strong momentum, with the Company recently reporting that Active Plans had increased by 70% QoQ to 506k and Active Customers were up 45% to 216k QoQ, for Q2 FY21. Currently operating predominantly across the Retail channel in the UK, Openpay is preparing for its next phase of growth via rollout in Automotive and Healthcare specialist verticals, areas where it can make a true difference, providing a smarter way for consumers to manage their spending over traditional credit products.
* Data correct to 2 February 2021 www.trustpilot.co.uk
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Openpay Group Ltd (ASX: OPY) is a fast-growing and highly differentiated player in the global ‘Buy now pay later’ (BNPL) payment solutions market. The Company’s strong platform enables it to deliver the most flexible plans in the market with durations of 2–24 months and values of up to $20,000.
Openpay focuses on industries where it can make a true difference: Automotive, Healthcare, Home Improvement, Memberships and Education; and its target customers are finance-savvy and of an older demographic who use Openpay plans as a cashflow management tool.
Openpay also has a unique B2B offering, OpyPro (formerly Openpay for Business), a SaaS-based platform that allows companies to manage trade accounts end-to-end, including applications, credit checks, approvals and account management in the one system.
Openpay provides services to Customers and Merchants in Australia, New Zealand, the UK and entered the US market, under the brand name Opy, in December 2020.