Why the Openpay (ASX:OPY) share price is surging higher today

The Openpay Group Ltd (ASX: OPY) share price is climbing today after another strategic partnership deal. Here are the details.

The Openpay Group Ltd (ASX: OPY) share price is lifting as the market nears the close of trade today. This comes after the buy now, pay later (BNPL) company announced a strategic partnership with Officeworks.

At the time of writing, shares in the BNPL provider are up 4.69% to $3.35, after reaching an intraday high of $3.57 in early trade.

2 businessmen shaking hands, indicating a partnership deal and share price lift

Image source: Getty Images

Delivering on its growth plans

The Openpay share price is moving higher after another positive update that will boost its presence in the Australian market.

In today's release, Openpay advised that it has launched its 'Buy now. Pay smarter.' plans across Officeworks. The offering will be available both online and instore Australia-wide. Rollout is expected to start this month and run through into March.

Established in 1994, Officeworks is a leading retailer that offers customers a wide range of office supplies, technology, furniture, art supplies, education resources, and print and copy services. The company operates 168 stores nationally and houses more than 4,000 products on its website.

This latest addition to Openpay's growing list of merchants further underscores the company' strategy to provide a smart budgeting tool for important consumer purchases. The BNPL company offers various BNPL plans across industries such as automotive, healthcare, home improvement, memberships and education.

Just recently, Openpay signed major Australian brands that included Kogan.com Ltd (ASX: KGN), Surfstitch Group, Dick Smith and Matt Blatt.

Management commentary

Openpay managing director and CEO Michael Eidel hailed the new partnership, saying:

We are delighted to have launched this agreement with Officeworks. By partnering, we can provide a great budgeting tool to help families get their school and work needs sorted, while supporting Officeworks to 'help make bigger things happen' for their customers. This approach fits nicely with the higher-value, longer-term plans that we can offer to customers and responds to the growing trend for interest-free instalment payments.

Officeworks managing director Sarah Hunter added:

We are excited to be partnering with Openpay. The flexibility of its BNPL solution will provide our customers with more time to pay for all their computing, technology, furniture and stationery needs to help them make bigger things happen.

Foolish takeaway

The Openpay share price is up more than 150% in the last 12 months. Its shares touched a low of 32 cents in last year's COVID-19 meltdown in March, before accelerating higher. At today's price, the company has a market capitalisation of $266.13 million.

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com ltd. 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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