Original article by David Swan
The Australian – Page: 15 : 8-Feb-23

Splitit CEO Nandan Sheth warns that more ‘buy now, pay later’ providers are likely to collapse, after Openpay was placed in the hands of receivers from McGrathNicol. Sheth contends that Openpay’s business model was "fundamentally flawed", and he is not surprised about the company’s demise. He notes that many BNPL providers focus on subprime consumers who may not have credit; he adds that Splitit uses a customer’s existing credit from a credit card issuer, while it deals with merchants rather than consumers. Openpay has retrenched about 80 employees and shut down its platform, and McGrathNicol is seeking a buyer for the company.

CORPORATES
OPENPAY GROUP LIMITED – ASX OPY, McGRATH NICOL AND PARTNERS SERVICES PTY LTD, SPLITIT PAYMENTS LIMITED – ASX SPT