According to Reuters, the American expansion caused Openpay's losses to increase by 65% in H1 2022, and the company had wanted an investor to help fund its US expansion.
Current economic and market conditions and ‘the likely ongoing capital investment required’ forced Openpay to stop extending loans and cut most of its US unit's staff, it said in a statement cited by Reuters.
OpenPay’s move to retreat from the US market adds to an ongoing downgrading within the BNPL global market.
Before Klarna announced 10% employee layoffs in May 2022, Sezzle, another Australia-listed BNPL company focused on the US cut a fifth of its workforce in America and announced recently it will exit the Indian market as well.
Moreover, Brighte, an unlisted Australian BNPL firm specialising in solar energy, told Reuters it cut 15% of staff this month, after cancelling plans to sell its own battery network.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now
We welcome comments that add value to the discussion. We attempt to block comments that use offensive language or appear to be spam, and our editors frequently review the comments to ensure they are appropriate. If you see a comment that you believe is inappropriate to the discussion, you can bring it to our attention by using the report abuse links. As the comments are written and submitted by visitors of the The Paypers website, they in no way represent the opinion of The Paypers.