Payright continues strong growth in merchandise value and customer acquisition

Australian-based buy now pay later (BNPL) provider of choice for higher-value purchases, Payright Limited, (ASX: PYR) (‘Payright’ or ‘company’), has delivered strong quarter-on-quarter (QoQ) increases in gross merchandise value (GMV1) and Total Customer2 numbers across Australia and New Zealand.
The company continued the positive momentum into December 2020, generating ongoing growth in GMV and customer acquisition against the previous quarters.

Highlights – GMV and customer acquisition
Australia and New Zealand cumulative
Quarter-on-quarter from 1 April to 31 December 2020:

GMV for the December quarter was $A20.6 million, reflecting an increase of 28% against the September quarter, and further building on the strong GMV growth of 44% achieved in the September quarter. Overall, the December quarter GMV exceeded the June quarter equivalent by 84%.

Total Customers grew to 42,300, an increase of 13% against the September quarter, and a pleasing 25% against the June quarter equivalent.

Australia
Quarter-on-quarter from 1 April to 31 December 2020:

GMV increased by 20% to $18.9 million against the September quarter, following a rise of 42% versus the June quarter.

Total Customers grew by 12% to 41,700 against the September quarter, following an increase of 10% versus the June quarter.

New Zealand
Quarter-on-quarter from 1 April to 31 December 2020:

• GMV increased by 521% to $1.7 million* against the September quarter, following a rise of 647% versus the June quarter.

Total Customers rose by 271% against the September quarter, following an increase of 127% versus the June quarter.
(* Quoted GMV for New Zealand is expressed in AUD). Further details are provided in Annexure A

Additions to merchant portfolio

The company’s strong momentum has carried into its merchant acquisition volumes, with the company making key additions to its 2,800-strong merchant partner portfolio spanning the retail, home improvement, health & beauty, photography, education and automotive industry sectors. Agreements were signed with 217 merchants in the September quarter, and a further 256 in the December quarter.

Payright is committed to maintaining its position as the ‘go-to’ BNPL provider in Australia and New Zealand for higher-value and considered purchases, by continuing to enhance customer experience and adding value to its merchant partners.
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1 Gross Merchandise Value (measured as the sum of the total sales value of all Payright active and closed plans).
2 The total number of consumers who have used the Payright service with an active or closed plan as at the end-of-period date.

Maintaining momentum

Payright specialises in higher-value, ‘considered’ purchases of between $1,000 and $20,000, with an average transaction value of approximately $3,000. This represents a key point-of-difference in the rapidly growing BNPL sector.

Funds raised from Payright’s recent capital raisings, including $A18.5 million through the company’s initial public offering, will be used to further extend its reach and presence in both the Australian and New Zealand markets. This will be driven primarily through dedicated customer and merchant acquisition strategies, and ongoing investment in its technology capability.

Co-CEO, Piers Redward, said: “In addition to the strong momentum across our target markets, the progress we are making in New Zealand is clear evidence of the significant opportunity for Payright to assist businesses which are seeking a consistent solution across both geographies. We believe this will help to further strengthen our position in Australia, particularly in relation to merchants which operate across both countries.”

Payright Co-CEO, Myles Redward, said: “The growth we are seeing is a direct outcome of the strategy we are pursuing. This includes complementary customer and merchant acquisition strategies to keep growing our penetration rates across both geographies and across our key industry sectors, as well as the enhancement of integrated technology solutions spanning ecommerce, marketplaces and point of sale software designed to accelerate our growth agenda.”