The Openpay Group Ltd (ASX: OPY) share price is on the backfoot this morning despite announcing a lucrative partnership with a key automotive group. At the time of writing, the buy-now, pay-later (BNPL) provider's shares are down 3.74% to $3.09.
Image source: Getty Images
What did Openpay announce?
The Openpay share price is coming under pressure today as investors seem unfazed by the company's positive news.
According to this morning's release, Openpay advised that it has entered a partnership agreement. The new agreement is with Ford Australia which is a subsidiary of its global parent group, Ford Motor Company.
In the deal, Openpay's BNPL solution will be offered to Ford Australia customers. It will be available through its dealership network for car servicing needs. This will include repairs, parts, and accessories in which a customer may not be able to afford upfront.
The BNPL option will be rolled out across Ford Australia's booking engines, including online and in-store platforms.
Openpay highlighted that its latest contract win is a major milestone achievement along with the Pentana deal which went live this month. The company noted that around 2500, or 60% of Australia's new car franchise dealerships, use Pentana's eraPower Dealer Management Software.
The signing of Ford Australia further strengthens Openpay's business model to be a leading BNPL provider in the automotive sector. The company also operates in the healthcare, home improvement, education, and memberships markets.
Openpay revealed that it will continue to focus on building further partnerships with original equipment manufacturers, distributors, and importers within the automotive industry.
Management commentary
Openpay Managing director and CEO Michael Eidel welcomed the new partnership, saying:
We are proud to have signed with a brand as iconic as Ford Australia. Through this partnership we will be working together to help Ford's customers 'go further' – making greater payment flexibility available for all their car servicing needs.
We have previously partnered with many dealership groups but partnering at the OEM level strongly cements our leadership position in the automotive vertical.
Openpay share price snapshot
During the last 12 months, the company's shares have accelerated to achieve a gain of more than 160%. It's worth noting that during the COVID-19 rout, the Openpay share price listed for as low as 32 cents. At today's current price, this represents close to a 10-fold increase in less than a year.
