Openpay: Major buy now pay later firm goes into liquidation as doubts grow about the future of controversial credit services

By Stephen Johnson, Economics Reporter For Daily Mail Australia

Published: 10:57 GMT, 28 November 2023 | Updated: 11:14 GMT, 28 November 2023

Buy now, pay later app Openpay has gone into administration nine months after it stopped customers from making purchases.

Insolvency firm Cathro & Partners Pty Limited were appointed late on Tuesday afternoon as administrators, the Australian Securities and Investments Commission announced.

The previous receiver McGrathNicol in April revealed the company owed creditors $66.1million. 

The business was originally established in 2013 as an in-store layby digital platform in Australia and New Zealand, but it expanded in 2016 when it became known as Openpay.

But less than a decade after launching, Openpay in February announced that customers would no longer be able make new purchases as they paid off existing debt.

Buy now, pay late app Openpay has gone into administration nine months after it stopped customers from making purchases 

Back then, McGrathNicol partners Barry Kogan, Jonathan Henry and Rob Smith were appointed as receivers and managers of Openpay Group Ltd.

On Tuesday, ASIC announcement that Simon Cathro, a managing partner at Cathro & Partners would be the administrator.

A virtual meeting for creditors is being held via Microsoft Teams on December 5.

The Reserve Bank this month raised interest rates for the 13th time in 18 months, squeezing spending among younger consumers battling surging mortgage rates or rent.

Assistant Treasurer Stephen Jones in May announced buy now, pay later apps such as Afterpay and Zip would be required to have a credit licence and comply with responsible lending obligations.

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Openpay: Major buy now pay later firm goes into liquidation as doubts grow about the future of controversial credit services

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