Here's why the Payright (ASX:PYR) share price is soaring 9% today

The Payright Ltd (ASX: PYR) share price will be on focus after providing an update on its key growth initiatives. Here's what was announced.

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The Payright Ltd (ASX: PYR) share price is up this morning after providing an update on its key growth initiatives. At the market open this morning, shares in the buy-now, pay-later (BNPL) provider are trading at 73.5 cents.

What did Payright announce?

The Payright share price is on the move today after revealing three important announcements.

According to this morning's release, the first update Payright advised was the launch of its Bill Smoothing payment option. Bill Smoothing is a direct-to-customer service. The service allows consumers to spread their household bills across a three-month period up to the value of $1,000. This includes utilities, bills, council rates, vehicle registration, car & home insurance premiums, rental payments, and school fees, among others.

The pilot program recorded strong success. Consequently, the options are being offered to all existing Payright customers. However, the company is planning on rolling out the service to new customers in the near future.

Additionally, Payright stated that the Bill Smoothing payment option adds another dimension to its value-added services. The company is seeking to capture the Australian and New Zealand market through its expanded range of products.

Payright co-founder and joint-CEO Piers Redward commented:

With approximately 8.8 million residential gas and electricity customers in Australia, and a total market for electricity bill payments in excess of $9 billion per year, Payright Bill Smoothing offers customers the ability to manage the rising cost of living through an easy and affordable payment plan for their household bills.

Merchant growth

In addition to the new product offering, Payright highlighted that its merchant portfolio continues to grow. The latest inclusions are leading Australian home improvement retailers, Australian Outdoor Living, Stratco, and Into Blinds as well as New Zealand's national electrical retailer, Appliance Plus.

Management noted that Payright's merchant portfolio spans over the retail, home improvement, health & beauty, photography, education, and the automotive industry.

New warehouse facility

In a bid to support future operations, Payright has engaged with Gresham Partners. This partnership has allowed Payright to secure a $100 million wholesale warehouse facility. This follows a recent review of the company's existing funding program.

Management explained that once a new warehouse funding is set up, the company will accelerate new growth programs.

Payright's other co-founder & joint-CEO, Myles Redward said:

Following Payright's successful IPO and the recent extension of our existing loan notes program, we are excited to have secured Gresham's services to assist with the proposed transition to a bank warehouse facility. The combined funding mix will provide us with an enhanced capability to aggressively accelerate growth through merchant and customer acquisition initiatives such as Bill Smoothing, along with a number of other new products scheduled for deployment in the coming months.

Payright share price snapshot

The Payright share price has lost around 35% over the past 12 months. Most of the falls coming from year-to-date. The company's shares reached a high of $1.22 in the middle of last month.

Based on the current share price, Payright has a market capitalisation of roughly $40 million, with 59 million shares outstanding.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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