ASX-listed Openpay has signed a deal with Woolworths that takes the fintech into the B2B sector.
Woolworths will launch Openpay for Business, which allows companies to manage trade accounts end-to-end, including applications, credit checks, approvals and account management in the one system. The move is a shift way for Openpay from buy-now-pay-later (BNPL) services it launched with to a more software-as-a-service (SaaS) approach. The company outlined plans to develop a B2B payments solution in its prospectus.
The Melbourne startup, founded in 2013, listed (ASX:OPY) in mid-December last year, and its shares are up 5% to $1.26 in early trade today.
Under the agreement, Woolworths will roll out Openpay’s new business-to-business portal across its payments and digital platform, as part of grocer’s B2B service. The deal does not include Woolworths offering BNPL services through the platform.
Woolworths will utilise Openpay’s Software-as-a-Service business management platform which has an initial term of three years with an option to extend for a further two years. Woolworths will not be offering a BNPL facility through the platform.
Openpay CEO, Michael Eidel said the company is focussed on developing a B2B payments solution with global potential.
“This new SaaS product represents an important differentiator for us. It does not require support from, Openpay’s balance sheet and is expected to deliver diversified revenue streams for the company,” he said
“Businesses with trade accounts currently face manual, very time-consuming processes to gain approval for credit checks and manage their accounts.
“With Openpay For Business, these companies can now seamlessly control the whole trade account process from signing new accounts to invoicing in the one system, saving much needed time and resources and improving trade customers’ experiences”.