Join our daily newsletter At The Bell to receive exclusive market insights
- Openpay (OPY) expands across the US through a partnership with Cross River Bank
- Through the partnership, OPY will launch a US platform to facilitate the origination of Cross River’s buy now, pay smarter consumer loans
- Loans will be available to consumers in amounts up to $27,431 with terms up to 24 months originated and funded by Cross River
- OPY will receive revenue from a mix of merchant and facilitation fees as well as consumer charges on loans that the company purchases
- Shares closed 2.3 per cent lower at $1.27 each
Openpay (OPY) has offered its consumer loan products to Cross River Bank through a partnership supporting OPY’s expansion across the US under the Opy brand.
The collaboration will see Opy launch a US platform to facilitate the origination of the New Jersey state-chartered Federal Deposit Insurance Corporation-insured bank’s buy now, pay smarter consumer loans.
Opy aims to offer closed-end consumer loans in amounts up to US$20,000 (A$27,431) and with terms up to 24 months originated and funded by Cross River.
Under the partnership, loans taken out on the Opy platform will be underwritten by Cross River, utilising OPY’s approved risk models with Cross River’s credit underwriting and strict regulatory framework.
Loans will be funded and originated by Cross River and serviced by Opy. Cross River will also serve as the lender for all Opy-branded loans originated in the US under the agreement.
OPY will receive revenue from a mix of merchant and facilitation fees as well as consumer charges on loans that the company purchases.
Openpay’s US CEO Brian Shniderman said the company was already experiencing incredibly strong demand in the US.
“This partnership will enable Opy to successfully fill a large void in the existing US market with our longer, larger, customised and interest-free product,” he said.
Additionally, the company said the partnership allowed it to continue focusing on its key verticals including healthcare, auto servicing, home improvement, private education and large ticket retail industry sectors.
Shares closed 2.3 per cent lower at $1.27 each.
