In Australia, the year 2020 has been all about buy now, pay later companies going big. This week, yet another BNPL service, Payright Limited got listed on the Australian Securities Exchange and claims to be different from what already is being offered by its competitors in the market.

Payright (ASX:PYR) will start trading on Wednesday, 11 AM AEDT after its IPO at $1.2 a share. The fintech’s market capitalization is about $107 million. 

Payright says it is different from other BNPLs

Co-founder and CEO of Payright Limites, Myles Redward says his BNPL targets a different consumer base altogether as compared to other buy now, pay later providers. Most of them offer their installment services on transaction sizes ranging between $150 to $500, but for Payright, the average transaction size is about $3000, says Redward. So, the BNPL services of Payright will be used for consumers to pay for things like higher education fees and home renovations.

As the price point is higher, the money lent to the consumers is for making purchases in a wider range of industry types that are more diversified, he adds. As the purchase limit given is high, the fintech puts its consumers through a more vigorous credit assessment process, Redward told The Motley Fool. To minimize and eliminate the risk of lending out larger amounts of money, Payright Limited has to be more discriminating about the consumers it lends to. The credit checks are done through Equifax Inc (NYSE: EFX) that considers a range of stability and capacity type inputs and measures in addition to ID-verifications to safe harbour standards.

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Redward feels that, particularly for the BNPL sector, the stock market is currently welcoming of new entrants and the overall sentiment is positive. He says that it was a case of trying to capitalize on this sentiment and take advantage of the stock prices they’re seeing more broadly.

Post-IPO plans of Payright Limited

Payright Limited’s Initial Public Offering set was to raise $10 million (and up to $20 million, if it was to oversubscribe). Payright raised a whopping capital of $18.5 million and combined with its pre-IP funding round held a couple of weeks ago, it has $25 million to work with.

Capital raised will be spent on sales and marketing efforts technology and product development, according to Redward. The goal behind going public is to truly accelerate and turbo-charge growth over and above what they’ve been able to achieve. For Payright Limites, Australia will continue to be the priority market, however its nascent New Zealand arm ps have restarted its operations after pausing during the pandemic.

SEE ALSO: Aussie BNPL giant Zip makes a strategic investment in UAE-based Spotii

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