Openpay (ASX: OPY) share price rockets up 8% after major announcement

The Openpay Group Ltd (ASX: OPY) share price is up 8.33% early this morning as the BNPL group eyes a lucrative overseas expansion.

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The Openpay Group Ltd (ASX: OPY) share price is surging up today after a major expansion announcement from the Aussie buy now, pay later (BNPL) group. At the time of writing, the Openpay share price is trading up 8.33% at $2.34.

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Image source: Getty Images

Why is the Openpay share price rocketing up?

Openpay has marked its first full year of trading on the ASX by reporting a record trading result. The BNPL company posted a new record month of total transaction value (TTV) with November 2020 numbers skyrocketing.

November TTV totalled $35.7 million, up from the previous Openpay record of $25.8 million. Strong Black Friday and Cyber Monday sales provided a strong boost with Black Friday 2020 representing the best day of trading in Openpay's history.

The Openpay share price has rocketed higher in the 12 months since listing with a market capitalisation of $150 million. Shares in the BNPL group are up 74.2% so far in 2020 with Openpay now boasting a $233.3 million valuation.

Openpay UK saw significant growth in active plans, up 1,919% on the prior corresponding period (pcp) with active customers up 961% on pcp in November. The group's UK operations now has agreements in place with 53 merchants in a sign of further growth.

What else did Openpay announce?

The other big news alongside the record monthly trading result was the group's expansion into the United States. Openpay has started its US launch with the appointment of highly respected US industry leaders.

Openpay's focus and strategy remains the same as in Australia and the UK, with flexible longer-term and higher-value plans in its consumer and business to business (B2B) platforms.

Openpay has touted its strong management team and extensive deal pipeline as cornerstones of the US launch. That includes new Openpay US CEO and global chief strategy officer, Brian Shniderman. Mr Shniderman joins from Deloitte where he founded and grew the firm's 'globally top-ranked' payments practice.

Foolish takeaway

The Openpay share price is one to watch this morning after the latest sales and expansion news, following in the footsteps of fellow BNPL rivals Zip Co Ltd (ASX: Z1P) and Afterpay Ltd (ASX: APT).

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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