Payright

Payright is an Australian BNPL provider offering in-store and online financing solutions to merchants in Australia and New Zealand. The company’s co-founders, Myles and Piers Redward, have over 30 years of combined experience in credit, risk, and retail finance. The two have served at companies such as Moody’s, the Bank of Ireland, FlexiGroup, Wingate Consumer Finance, and GE Capital. It provides flexible financing ranging from 3-36 months for purchases between AUD 1,000 and AUD 20,000 (approximately USD 770 to USD 15,000) but also requires a customer deposit based on the risk profile of both the customer and the retailer. These plans can be repaid in bi-weekly or monthly installments. It also launched BNPL for utility bills (April 2021) allowing users to pay off up to AUD 1,000 (approximately USD 770) in bills over three months. 

Payright generates revenue through merchant and customer charges that include 1) establishment fees, which range between AUD 5 to AUD 90 depending on the length of the plan, 2) a monthly account keeping fee, AUD 3.50 per month, 3) a payment processing fee, AUD 2.95 per repayment, 4) repeat purchase fees of AUD 5 to AUD 20 for additional plans on the same account and 5) late payment fees of up to AUD 13 per missed payment with a limit of 10% of the approved credit limit or AUD 250. As of June 2021, the average transaction size on the platform was around AUD 3,500 (approximately USD 2,500). Payright integrates with e-commerce platforms such as Magento, PrestaShop, WooCommerce, and Drupal.

Funding and financials

In FY2022, Payright reported a gross merchandise value of AUD 120 million (~USD 87 million), reflecting YoY growth of 41%. Total revenue rose 34% YoY to AUD  16 million (~USD 12 million), driven by a 44% YoY increase in total customers to ~77,000 with a merchant footprint of almost 3,900. However, it was not profitable, reporting AUD 4 million (~USD 3 million) in operating losses, which improved by 39% from FY2021.

In March 2021, the company revealed that it engaged Gresham Advisory Partners Ltd to advise on sourcing a AUD 100 million (approximately USD 77 million) wholesale warehouse funding facility. The facility was expected to strengthen Payright’s loan book to execute future growth plans.  

In December 2020, Payright listed on the Australian Securities Exchange with the issuance of 15.4 million shares at AUD 1.20 per share, raising AUD 18.5 million (approximately USD 15 million) in the process. This was in addition to the AUD 7 million (approximately USD 5 million) in pre-IPO funds raised via convertible notes before November 2020. The funds from the IPO were allocated toward its expansion in the Australian and New Zealand markets, customer acquisition, and technology development.