What an incredible week it has been for the Openpay Group Ltd (ASX: OPY) share price.
Since last Wednesday, shares in the buy-now, pay-later (BNPL) company were trading as low as 20 cents a pop.
Today, these shares are now fetching for 31 cents – up 21.57% for the day.
This represents a gain of 55% over the past week for those lucky shareholders who decided to buy in.
Let's take a look at what could be boosting the company's share price.
What's driving the Openpay share price higher?
Investors are also bidding up Openpay shares following strong market moves in the sector today.
BNPL peers, Zip Co Ltd (ASX: ZIP) and Splitit Payments Ltd (ASX: SPT) are up 15.61% and 5.5%, respectively.
With no announcements from either company, it appears short sellers could be closing out their positions as investor confidence ramps up.
In addition, news that Openpay is expanding its services into other markets is also providing support.
According to the Wall Street Journal, Openpay is looking to enter the healthcare sector to combat the global economic slowdown.
As consumer spending tightens up, the first industry to be impacted is likely discretionary purchases such as shopping for clothes.
However, in a bid to boost revenue and ensure survival in a gloomy economic environment, Openpay is pivoting towards payment plans for medical procedures. This is because consumers are more inclined to spend on healthcare treatments such as dentistry or other frequently needed services.
Minimising credit risk has become a top priority for BNPL providers as bad debts continue to rise across the industry.
But by servicing the healthcare market, payment instalments can be linked to a patient's continued treatment plan. In essence, it is less likely that a person will miss a payment as they have an ongoing relationship with the healthcare provider.
Openpay share price snapshot
Despite rocketing this week, the Openpay share price has a long way to go to recover its losses in 2022, down 55%.
Its shares reached an all-time low of 12 cents on 30 June, before rebounding to a two-month high.
Based on today's price, Openpay presides a market capitalisation of roughly $35.61 million.
