The Openpay Group Ltd (ASX: OPY) share price has started the week on a positive note.
In morning trade, the buy now payer later (BNPL) provider’s shares are up 12% to $1.41.
Why is the Openpay share price surging higher?
Investors have been bidding the Openpay share price higher on Monday following the release of a positive announcement.
According to the release, the BNPL provider has signed a two-year agreement with global information technology giant HP.
The agreement will see Openpay deliver its OpyPro business to business (B2B) platform to HP, allowing an enhanced trading experience for HP business customers. The OpyPro platform manages trade accounts end-to-end, including account application processing, seamless business customer onboarding, credit checks, approvals, and account management.
This is the second B2B contract win, following a deal with Woolworths Group Ltd (ASX: WOW) late last year.
The company expects average order values for HP products to be significant and for the OpyPro product to drive strong transaction value for HP for all on account sales to HP business customers.
Openpay’s CEO and Managing Director, Michael Eidel, was very pleased to get HP on the platform.
He commented, “We are delighted to have signed HP as our second B2B contract win, adding another household name to our growing list of iconic partners. This deal demonstrates Openpay’s ability to attract top tier business partners as we work to make the business-to-business payment experience easier and more efficient.”
“This will also be the first time we’ve put our relationship with B2B funding partner Lumi, into action. Having Lumi in the mix enables us to continue to deliver OpyPro as a capital light, high transaction-volume SaaS play. We look forward to going live together imminently,” he added.
Earlier this year the company signed an agreement with Lumi Financial Management to provide SME funding to OpyPro customers. This means OpyPro can remain a pure SaaS, capital light solution.
Lumi’s CEO, Yanir Yakutiel, commented, “We are extremely excited about our partnership with Openpay and HP. This is something that we have been working on with Openpay in the background for several months and it is always exciting when something that started as an idea comes to life. This rollout is the first of many and we are looking forward to announcing more partnerships in the weeks and months ahead.”
Despite today’s gain, the Openpay share price is down a disappointing 40% in 2021.