How Payright is Filling the Missing Link for BNPL Platforms

Ally Feiam By Ally Feiam | 30 Jul 2019

It’s time to welcome another BNPL (Buy Now Pay Later) platform to the game: Payright. Unlike other scheduled payment platforms, Payright is here to provide customers with loans up to $20,000.

Much like other repayment services, Payright allows customers to purchase a good and pay the fee over a period of time. However, unlike most, Payright allows larger loans, which is a gap that the likes of Afterpay as yet to fill. Founded by brothers, Piers and Myles Redward, this BNPL platform is ready to shake up the industry.

Users of the Payright platform now have the opportunity to borrow up to $20,000, which is significantly more than its competition, which only allows a loan of up to $2,000. The average transaction amount for Payright is also much larger than its counter platforms, with an average spend of $2,500 by its users. “We do see ourselves very different to the likes of Afterpay and other similar services,” Piers Redward explained. “Compared with other players in the buy now, pay later space, our merchants and retailers are a diverse mix of more broad-reaching products and services such as direct sales businesses, home improvement, education, photography, dental, and health and beauty … PayRight is for more considered purchases rather than smaller impulse buys.”

The BNPL platform was established in Australia in 2015, it’s only recently that the service has made some inroads. The Melbourne-based start-up has raised $30 million, $23 million of which is from debt funding. In the last 12 months, $26.5 million has been raised, including $10 million which it raised from debt funding in the year prior.

Although this isn’t the first BNPL platform that supports a large loan size, it has been almost doubling quarter-on-quarter and secured an investment led by Henslow, a corporate advisory firm, and wealth managers, Scala Partners. “Once we became fully funded we released that handbrake and started to grow from there,” explained Payright’s Co-Founder, Myles Redward.

The pair, Piers and Myles Redward have prior financial experience. Piers specialises in interest-free products, leasing and personal loans, and previously worked with FlexiGroup, who owns BNPL platform humm, as well as Esanda Finance, Now Finance and MacCredit. Myles has ‘extensive expertise’ in Financial Planning and Analysis and Consumer Finance, working with GE Capital and Northern Trust.

Currently, Payright has more than 20,000 customers, and around 1,000 merchants under its belt – between one to two hundred are joining on a monthly basis. These numbers are ‘growing rapidly with more and more merchants coming on board,” said Piers Reward. With a goal to reach a value of $200 million, the BNPL platform is on its way with a smaller goal of $45 million worth of loans by the end of 2019.

There have been a few issues surrounding the logistics of BNPL platforms, with Afterpay put in hot water regarding its ethics behind the loan service, and ‘slipping through the cracks’ of the financial sector, which ultimately led to the company being investigated by the AUSTRAC. This audit aims to discover if there have been breaches to the Anti-Money Laundering and Counter-Terrorism Financial Act 2008. “The audit will help identify if Afterpay has developed and implemented the systems and controls it needs to ensure it complies with its obligations. These laws are in place to protect businesses, the financial system and the Australian community from criminal threat,” explained AUSTRAC’s CEO, Nicole Rose PSM.

Moreover, BNPL is also being taken over by Visa, who have made waves by introducing its own service in the wake of others’ success. This introduction of Visa’s platform is currently being trialled with retailers and allows users to make scheduled payments via the Vosa app, rather than using third-party platforms. “Visa’s instalment capabilities are changing the game by allowing issuers to leverage an existing payment account consumers already have and are familiar with, instead of asking them to submit to a credit check, download an app or open another line of credit,” explained Sam Shrauger, Visa’s Senior Vice President, Global Head of Issuer and Consumer Solutions.

Despite the influx of BNPL platforms coming up from every spot, it seems that Payright has come in at the right time. Its larger purchase price gives wiggle room to those who are after a large purchase, and the terms and conditions to signing up are quite similar to those who apply for a credit card. Users must be over the legal age of 18, who work in a full-time job for more than 30 hours a week. Users must also be an Australian citizen and provide identification in order to be approved.

“Particularly where there is an opportunity in the market,” explained Myles Redward. As with most start-ups, the early days seem “overwhelming and daunting”, he said. His advice for those who are wishing to create their own star-up is it ‘give it a go’ – “…Get out there, roll the dice, surround yourself with good people and give it a crack,” he said.

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