Own Afterpay (ASX:APT) shares? This little-known company is aiming to disrupt the BNPL sector

Limepay takes a different approach to buy now, pay later…

If you own Afterpay Ltd (ASX: APT) shares, it can be useful to check in on what peers are up to in the buy now, pay later (BNPL) space.

While the payments company headed up by Nick Molnar and Anthony Eisen might be one of the most recognisable BNPL players, there are smaller competitors sprouting — putting their own spin on things. One such company is the brand-first payment platform provider, Limepay.

At present, the Afterpay share price is fetching $120.90, up 4.68% from its previous close.

A little girl wearing wonky glasses checks out what's happening in the world on a mobile phone.

Image source: Getty Images

A different take on BNPL

In a media release yesterday, Limepay announced the appointment of a new CEO in Willie Pang. From here, Pang will lead the company as it embarks on its renewed business strategy.

Limepay is a little different from your stereotypical ASX-listed BNPL company. For starters, it isn't publically listed — but more importantly — it offers a white-label solution. This means merchants can provide alternative payments without redirecting customers to a third party such as Afterpay.

In fact, in the July 2021 FT Partners' Fintech Industry Research Report, Limepay was named the only white-label BNPL provider in the Oceania region.

The distinction is something that the smaller BNPL competitor is proud of, with a different business vision than most. Unlike others, Limepay wants to put the control, knowledge, and ownership of the customer back in the hands of brands. However, Afterpay shares appear unfazed today as the price rallies.

Commenting on his recent appointment, Limepay CEO Willie Pang stated:

Limepay has always set out to do something different; to flip the digital payments landscape on its head. Our broader mission is to empower brands to build longer, stronger and ultimately more loyal customer relationships.

We now have a renewed commitment to providing solutions beyond BNPL – including pay in full, pay later, pay in installments, subscription and in-store options – so brands can own the entire payments experience for their customers.

We know that Afterpay's growth has been considerable, typically doubling across most of its metrics year on year. So, how does Limepay's growth stack up against the ASX-listed giant? Well, the release indicates that underlying merchant sales grew by 1,100% year-over-year in FY21. As of now, Limepay boasts over 100 active merchants including Puma, EB Games, and Ecosa.

Could Limepay join Afterpay shares on the ASX?

Interestingly, Limepay was set for an initial public offering (IPO) to list on the ASX earlier in the year. However, those plans were muddied after co-founder and chief revenue officer, Daniel Peters, resigned suddenly after raising nearly $30 million in venture capital.

Since then, Limepay's financial adviser noted that the company would apply a "wait and see approach" to joining Afterpay shares on the ASX. Although, yesterday's release gave no additional detail regarding a future listing.

Motley Fool contributor Mitchell Lawler owns shares of AFTERPAY T FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended 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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