BNPL Openpay goes under as creditors chase debt

In the quarterly update, Openpay CEO Dion Appel said the company’s credit performance remained within its target threshold and historical range.

“Loan performance has weakened, but compared to the pandemic era when government stimulus was high and Openpay prudently did not relax its underwriting rules,” he said.

An announcement to the ASX on Monday said McGrathNicol partners Barry Kogan, Jonathan Henry and Rob Smith, appointed by OP Fiduciary and Amal Security Services, now control the company’s assets, operations and trading activities.

“The trustees and managers will work closely with Openpay’s employees, merchants and customers to urgently determine the appropriate strategy for the company,” the statement said.

Openpay, which was first listed in 2019, is not the only BNPL feeling the pinch as interest rates rise.

The suspension comes after New Zealand’s BNPL Laybuy announced last week that it would be removed from the ASX.

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Several BNPL players experienced phenomenal share price growth between 2020 and early 2021, led by Australian success story Afterpay, which was acquired by US company Square in August 2021.

But over the past year, some of them have disbanded, including Zip Co, which suffered a stock price plunge, falling 78 percent from $3 a share in February 2022 to trade at 67 cents on Monday.

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