Openpay, an Aussie buy now, pay later (BNPL) company, has ended operations in the US market and laid off the majority of its staff in the country, Reuters has claimed.
According to Finextra, the lender is the latest BNPL player to feel the consequences of rising interest rates and a wider economic downturn, leading it to stop extending loans in what it had recently described as its ‘main growth market’.
The company cited investment in an ‘Americanised’ platform as the reason it saw falling losses in the first half of 2022, and is now exiting after failing to secure an investor to back its operations in the US.
This is the second big market exit by the company this year, after it left the UK market following three years in the country. It found that it failed to dent the market share of established competitor brands and was also caught up in an FCA crackdown on unfair and unclear terms in BNPL contracts.
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