Buy Now Pay Later

How does Openpay work?

How does Openpay work

Openpay is one of the newer alternate payment options available. They offer flexible terms and low fees for online and in-store shopping. This is their added edge over other more popular providers.

Want to check what it can offer you? Here’s a run-through of how it works – and how it may work for you as well.

Openpay Overview

Openpay was founded in 2013. They were ahead of most competition. Instead of playing head-to-head with the major BNPL providers, the company opted to specialise in well-curated retailers. They also have a basic credit check and screen to maintain safer loans.

Openpay is an easy to use buy now pay later/deferred payment service. This company offers some of the most flexible payment and schedule options.

Openpay’s main features

  • Open to all Australian and New Zealand customers (legal age)
  • Zero-interest rates
  • Up to $20,000 total credit limit
  • Minimum down payment on checkout
  • Weekly and fortnightly instalments
  • 1-24 month plans to pay the total amount
  • $9.50 late payment fee up to 2 days after the deadline
  • Easy application via app and online
  • Available in the Apple app store and Google Play apps
  • Payments through credit and debit cards, cash, check, or money order
  • 409 online and 3602 in-store retailers

The roster of retailers carry some of the important basics. Openpay wants to keep them within reach: Health & Wellbeing, Fashion, Lifestyle, Beauty, Trades & Services, Automotive, Sports & Outdoors, and Home & Garden.

Another addition to their services is an Openpay for Business account. Businesses are encouraged to partner with Openpay as an additional payment option for their online and physical store. Retailers and small businesses can apply on their website directly.

They stand to gain new customers from their membership. At the same time, they can offer alternate payment options to even more customers.

How to use Openpay

Openpay accepts customers 18 years and above. Two initial requirements are a quick ID and a basic credit check. The approval is done on the app or through your checkout within 90 seconds. It’s an additional safeguard to lessen possible debt trap instances.

  1. Open an account via the app, in-store, or at the checkout
  2. Choose the type of plan
  3. Go to a quick ID and credit check
  4. Wait for approval within minutes
  5. Shop online or in-store
  6. Set-up your payment plan and instalments
  7. Get or deliver your purchase instantly

Openpay’s target markets are older users who prioritise smart savings. These customers also want more flexible terms and a bigger credit limit for their purchases.

There are additional fees involved especially for those who apply for a higher credit limit. It is also for higher purchase amounts not more than $20,000:

  • Establishment fees are for these higher purchases before approval
  • Plan management fees, which depend on the plan chosen. These may apply to some plans and will be included in the total of every payment.

For businesses, just head to the business page and fill out the online application form. Once confirmed and registered, you can log in through the merchant log-in section. This leads to access to the Openpay Business account.

Shopping with Openpay

When you proceed to check out, you just need to pay a minimum down payment. Openpay has this policy for the customer to be committed to the purchase. It minimises buyer remorse symptoms and keeps purchases sure.

This is another policy term that has an edge over other competitors. It also makes sure business partners and Openpay have a safety net for using the service.

Flexible payment options that are accepted are varied and include:

  • Cash
  • Check
  • Money order
  • Credit
  • Debit cards

Openpay can stretch out the amount to more affordable pieces. The rest of the total can be scheduled in weekly and fortnightly payments over 1 to 24 months.

This is also effective when using credit cards to fund your Openpay. The total payments will be out of the credit card’s terms and fees. For debit cards, the instalments will make it easier to handle and spread out your budget.

They can also be paid anytime outside your schedule. You can minimise the rest of the remaining balance this way. The app will help you manage purchases and will send notifications for your scheduled instalments.

Brands and Business Partners

Openpay curates a lineup with many local and national businesses; Chosen retailers are in-demand and needed by most homes and individuals.  These are common emergency and out-of-the-budget purchases that are priorities as well.

These are usually house projects, automotive needs, last-minute gifts, specialty clothing and accessories, health and personal care regimen, and many other needs. The important basics, so to speak:

  • Automotive
  • Healthcare
  • Sports & Outdoors
  • Home Improvement
  • Home & Garden
  • Memberships
  • Education
  • Lifestyle
  • Beauty
  • Trades & Services

Brands include: Godfreys, Bunnings Warehouse, Flooring Extra, Bupa Dental, National Veterinary Care,
Repco Authorised Service, Pet Stock, Made to Measure, Mydeal.com.au, House, Taking Shape, Ultratune, Kogan, Intersport, Breathe, Dick Smith, Rockwear, Glue, Kookai, Connor, yd,

Another element that raises Openpay’s profile is their business connections. They are not strictly just customer loan providers.

First is their B2B or Business to Business service, Openpay Business plan. It is a SaaS-based platform or Software as a service application. They have the tools you need when doing business with Openpay.

It connects the business to Openpay’s growing customer database. This will increase new customers and more sales. Openpay also becomes an added alternative payment option for all shoppers.

Openpay Investors and ASX launch

Its second business connection is their Investor Center. This is where stock offerings and info are regularly updated.

Investors and stock buyers have started investing in the company since 2020. Openpay marks their first year on the ASX or Australian Stock Exchange. The current stock rate on their share price information is at $2.63. OPY Market Cap is also valued at $288M. The finance sector now has a bigger investment in BNPL or Buy now, pay later services.

In addition to these are regular parts of investor relations: Their website Investors.openpay.com.au has up-to-date information on:

  • ASX announcements
  • Corporate Presentations
  • Research reports
  • Annual reports
  • Corporate Governance references
  • Current Share Price info
  • Shareholder services
  • Annual General Meeting reports
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