Payright Company Profile

Background

Overview

Payright is an Australian financial technology company specializing in providing flexible, interest-free payment plans for higher-value purchases. Founded in 2016 by brothers Myles and Piers Redward, the company aims to make significant consumer purchases more affordable by allowing customers to spread the cost over time. Payright's services are designed to cater to both merchants and consumers, offering a seamless buy-now, pay-later (BNPL) solution that enhances affordability and accessibility.

Mission and Vision

Payright's mission is to empower consumers by providing flexible payment options that enable them to manage larger purchases without the burden of upfront costs. The company's vision is to become a leading provider of BNPL solutions for higher-value transactions, fostering financial inclusivity and supporting merchants in driving sales growth.

Primary Area of Focus

The company focuses on offering BNPL services for purchases ranging from $1,000 to $20,000, targeting sectors such as home improvement, education, photography, dental services, and health and beauty. By concentrating on higher-ticket items, Payright differentiates itself from other BNPL providers that primarily cater to smaller, impulse-driven purchases.

Industry Significance

In the rapidly growing BNPL sector, Payright has carved out a niche by addressing the underserved market for larger purchases. Its responsible lending practices and comprehensive credit assessments ensure that consumers can manage repayments effectively, contributing to the company's reputation for reliability and customer-centric services.

Key Strategic Focus

Core Objectives

• Consumer Empowerment: Provide consumers with flexible payment options that enhance affordability for significant purchases.

• Merchant Support: Offer merchants a reliable BNPL solution that drives sales and customer satisfaction.

• Responsible Lending: Implement thorough credit checks to ensure consumers' repayment capabilities, promoting financial responsibility.

Specific Areas of Specialization

Payright specializes in facilitating BNPL services for higher-value transactions, focusing on sectors such as home improvement, education, photography, dental services, and health and beauty. This specialization allows the company to address a market segment that is often overlooked by other BNPL providers.

Key Technologies Utilized

• Proprietary Payment Platform: An integrated system that automates payment processing, direct debit setup, repayment scheduling, and merchant settlements.

• Customer Application: A mobile app available on Android and iOS platforms, enabling users to manage transactions, update payment details, and monitor repayment schedules.

Primary Markets Targeted

Payright primarily targets the Australian market, with plans for expansion into New Zealand. The company's services are tailored to meet the needs of consumers and merchants in sectors that involve higher-value purchases, providing a flexible and responsible alternative to traditional credit options.

Financials and Funding

Total Funds Raised

As of July 2020, Payright has raised a total of $60 million through a combination of debt and equity funding. This capital has been instrumental in supporting the company's growth initiatives and technological advancements.

Recent Funding Rounds

• July 2020: Completed a $12 million oversubscribed capital raise, bringing the total funding to $60 million within 18 months.

• May 2019: Raised $30 million to support the expansion of its BNPL services for larger purchases.

Notable Investors

The funding rounds have been led by corporate advisory firm Henslow and wealth manager Escala Partners, with strong support from existing shareholders and investors.

Intended Utilization of Capital

The raised capital is allocated towards:

• Technological Development: Enhancing the payment platform and mobile application to improve user experience and operational efficiency.

• Market Expansion: Entering new markets, including New Zealand, to broaden the customer base and merchant partnerships.

• Operational Scaling: Increasing the workforce and resources to support the growing demand for BNPL services.

Pipeline Development

Key Pipeline Candidates

Payright's pipeline includes:

• Bill Smoothing Product: A service that allows consumers to spread the cost of utility bills, council rates, vehicle registration, and insurance premiums up to $1,000.

Stages of Development

The Bill Smoothing product has been introduced and is available to consumers, reflecting Payright's commitment to expanding its service offerings.

Target Conditions

The Bill Smoothing product targets everyday expenses, providing consumers with greater flexibility in managing their financial obligations.

Anticipated Milestones

The company aims to achieve significant adoption of the Bill Smoothing product, contributing to increased customer engagement and satisfaction.

Technological Platform and Innovation

Proprietary Technologies

• Integrated Payment System: Automates end-to-end payment processing, including direct debit setup, repayment scheduling, and merchant settlements.

• Customer Mobile Application: Enables users to manage transactions, update payment details, and monitor repayment schedules on Android and iOS devices.

Significant Scientific Methods

Payright employs data-driven credit assessment models to evaluate consumers' repayment capabilities, ensuring responsible lending practices.

AI-Driven Capabilities

The company utilizes machine learning algorithms to enhance credit risk assessment and fraud detection, improving the accuracy and efficiency of its lending processes.

Leadership Team

Executive Profiles

• Myles Redward: Co-Founder and Joint CEO. With over 15 years of experience in credit and risk management, Myles has held positions at Moody’s, Bank of Ireland, and GE Capital. He holds a Bachelor of Business Management from Monash University and is a Certified Practising Accountant.

• Piers Redward: Co-Founder and Joint CEO. Piers has extensive experience in the retail finance industry, including roles at ANZ’s Esanda Finance, FlexiGroup, and Wingate Consumer Finance. He holds a Bachelor of Business Management from Monash University.

• Stewart Creighton: Interim CEO. Stewart brings 30 years of financial services experience, including senior leadership roles at Commonwealth Bank and Westpac Group. He was appointed Managing Director of Metrics Business Finance in 2019.

• Tom Kellaway: Interim Chief Financial Officer. Tom has a broad range of commercial finance experience, including roles at Metrics Business Finance and Bigstone Capital. He has also held investment management and senior management positions across various sectors.

• Saara Mistry: General Counsel & Chief Risk Officer. With over 18 years of experience in legal, risk, and compliance within consumer credit and banking, Saara has worked with Barclays Bank, HSBC, NAB, and Liberty Financial. She holds a Bachelor of Science/Bachelor of Laws with Honours from Monash University.

Leadership Changes

In 2019, Payright appointed Stewart Creighton as Interim CEO and Tom Kellaway as Interim Chief Financial Officer to support the company's growth and strategic initiatives.

Competitor Profile

Market Insights and Dynamics

The BNPL market is experiencing rapid growth, with a significant shift towards higher-value transactions. Consumers are increasingly seeking flexible payment options for substantial purchases, creating opportunities for providers like Payright to address this demand.

Competitor Analysis

• Afterpay: A leading BNPL provider focusing on smaller, impulse-driven purchases with transaction limits up to $2,000.

• Zip: Offers BNPL services with transaction limits up to $1,000, catering to a similar market segment as Afterpay.

Strategic Collaborations and Partnerships

Payright has established partnerships with leading retailers and service providers, including Australian Outdoor Living, Stratco, Into Blinds, and Appliance Plus, to expand its merchant network and enhance service offerings.

Operational Insights

Payright's focus on higher-value transactions positions it uniquely in the BNPL market, catering to a segment that is often underserved by other providers. The company's responsible lending practices and comprehensive credit assessments ensure financial sustainability and customer trust.

Strategic Opportunities and Future Directions

Payright plans to expand its services into New Zealand, leveraging its expertise in higher-value BNPL solutions to tap into new markets. The company continues to invest in technology and partnerships to enhance its platform and service offerings, aiming for sustained growth and market leadership.