Retailer guide to Openpay
How retailers can take advantage of Openpay’s lay-by option instore and online.
Openpay has been around for about four years. And while the concept of buy now, pay later isn't necessarily new, this review will take you through how Openpay works to help you decide if it's right for you.
How does Openpay work for retailers?
Openpay helps online and bricks-and-mortar retailers convert more customers by offering an additional payment option. Openpay lets customers buy now and pay later, with a few different payment plans available.
If you are a retailer who has decided to integrate Openpay into your online business, your customers can simply choose to pay with Openpay if they have an account. Retailers such as yourself get paid the next business day as Openpay has a very quick turnover when it comes to settling transactions with merchants.
In store, you can install beacons that let customers with an iPhone iOS10 operating system be alerted by a push notification that Openpay is available.
How does Openpay integrate with my point of sale system?
Upon applying for a merchant account, you are required to list whether or not your business is available for web sales. This is where you list your point of sales system. A customer service representative will then get back to you about whether or not your application has been successful. A tender type is created for the point of sales system that you have and this is how Openpay integrates with it. Some of the systems they integrate with are WooCommerce and Magento.
What benefits does Openpay offer my business?
There are many benefits that come with offering Openpay, which include:
- Increase in sales. Openpay says its service generates incremental sales and increases average basket sales. This is because of the flexible and convenient payment options offered.
- An easy upsell. You can use Openpay as an additional sales tool as well as something to increase your customer retention rate and keep their loyalty.
- No financial risk. There is no risk to you as a merchant, as all the responsibility for payments and collections is left with Openpay.
- Fast payment for merchants. You are paid the next business day once a transaction has been made.
- Access to statistics. You have access to business and consumer analytics through your merchant dashboard. You gain valuable market insight into your customers and stores with this tailored benchmarking data on offer.
- Customers go through a credit check. Customers who purchase from your store go through a credit check before becoming a member of Openpay so you can be assured that they are able to pay off what they are buying.
How much will Openpay cost me?
As a merchant, you have to pay in order to be a part of the Openpay network. This cost is outlined to you before you sign an agreement to become a merchant with Openpay. There are also various other fees, such as the commission rate that Openpay takes. The commission fees are tailored to your specific business and industry and this will impact how much you have to pay Openpay to use its service. There is also a transaction fee that is similarly tailored to your specific business and industry and affects how much you have to pay. The fees that are charged are generally a small percentage of the sales that have been made.
What interest-free plans does Openpay offer shoppers?
Openpay offers payment plans of varying lengths. After setting up their account online or instore, customers are required to pay a small deposit and repay their balance fortnightly. Customers select their preferred account and these repayments are automatic. Openpay plans are interest-free for shoppers but they may have to pay certain other fees, such as an establishment fee or a late fee. Here are more details on how Openpay works for customers.
How do I start offering Openpay at my store?
You can start offering Openpay in your store, whether it’s online or instore, through completing a merchant application on its website. Some of the details that you need to include in order to be considered are:
- Your Australian Business Number (ABN) or Australian Company Number (ACN)
- Store locations
- Approximate number of stores and staff
- Your annual corporate turnover
- Some products that you sell and the products that you want to be financed by Openpay
- Your target demographic
- Your method of sale, whether it’s online, instore, through the telephone or Internet
- Whether or not web sales are required
- Your contact information
- How much your expected annual sales are under Openpay finance.
It might seem a bit daunting with all of the information that you have to provide, but with the increase in sales that you’ll see after incorporating Openpay into your point of sales, it will pay off in no time.
Frequently asked questions about Openpay
How does Openpay make its money?
It makes money through charging customers transaction fees, processing fees and late fees.
Do I have to use the data that is provided in the merchant dashboard?
No, you don’t. It provides a valuable insight that you might not have known about in regards to your customers and your in-store traffic, but you don’t have to use it.
Can I exclude products that I don’t want to be financed with Openpay?
Yes, you can! Simply include these in your merchant application and Openpay will not finance the specific products that are mentioned within the application. If you add a product and don’t want it to be financed, simply let the Openpay team know and they’ll take care of it.
The buy now pay later sector is currently under an ASIC review. Find out more about this review.
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