Openpay (ASX:OPY) share price rallies as services go live in the US

Openpay is the newest player taking a bite out of the lucrative US market.

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a father and his daughter stand at the counter while a vet wearing her uniform holds their small dog and scratches it under its chin.

Image source: Getty Images

The Openpay Group Ltd (ASX: OPY) share price is trading higher on Wednesday after the company announced its official launch in the United States.

At the time of writing, the Openpay share price is 1.81% higher to $1.41.

Openpay live in lucrative US market

Openpay is now live and transacting in the US healthcare market. More specifically, it’s operating in the veterinary sector via its partner ezyVet.

ezyVet is currently distributing Openpay services across its 1,200 US veterinary hospitals and clinics through its leading practice management platform.

“The US specialty veterinary market has high transaction values for procedures such as MRIs, CT scans, and reconstructive surgery,” Openpay said.

“OpyPay is conducting a controlled roll-out with the first live OpyPay ezyVet locations in California, Michigan, Virginia, and Ohio.”

Openpay believes it provides the US market with a differentiated payments solution. It is looking to offer consumers flexible instalment plans designed for larger purchases in sectors including healthcare, dental, auto repair, education, and big-ticket retail.

Management commentary

Openpay’s CEO and Global Chief Strategy Officer Brian Shniderman hailed the milestone:

We’re thrilled to announce the successful US launch of OpyPay – a milestone for the Openpay Group and a clear affirmation of our US strategy.

Our longer, larger, customized installment plans are built for life’s unexpected and important expenses, such as emergency dental surgery, sudden auto repair, and medical care for a beloved pet.

In partnership with ezyVet, OpyPay will be made available to 1,200 US clinics as the rollout progresses – and we look forward to other partnerships to efficiently access our target verticals.

Openpay share price snapshot

The Openpay share price has declined 37% year-to-date, broadly consistent with its struggling small cap peers such as Splitit Ltd (ASX: SPT) and Laybuy Holdings Ltd (ASX: LBY).

However, it’s managed to stabilise in the last three months, holding around the $1.30 to $1.40 level.

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