• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Fat Tail Daily

Investment Ideas From the Edge of the Bell Curve

  • Menu
    • Commodities
      • Resources and Mining
      • Copper
      • Gold
      • Iron Ore
      • Lithium
      • Silver
      • Graphite
      • Rare Earths
    • Technology
      • AI
      • Bitcoin
      • Cryptocurrency
      • Energy
      • Financial Technology
      • Bio Technology
    • Market Analysis
      • Latest ASX News
      • Dividend Shares
      • ETFs
      • Stocks and Bonds
    • Macro
      • Australian Economy
      • Central Banks
      • World Markets
    • Small Caps
    • More
      • Investment Guides
      • Premium Research
      • Editors
      • About
      • Contact Us
  • Latest
  • Fat Tail Series
  • About Us
Technology Fin Tech

OPY Shares: Cross River Bank Partnership Spurs US Expansion (ASX:OPY)

Like 0

By Kiryll Prakapenka, Tuesday, 05 October 2021

The market was less thrilled. Openpay Group Ltd [ASX:OPY] share price is currently trading at $1.27 per share, down 2.3%.

The Openpay Group Ltd [ASX:OPY] announced a partnership with Cross River Bank to support the BNPL provider’s expansion into the US market under the OPY brand.

Cross River is a New Jersey state-chartered, Federal Deposit Insurance Corporation (FDIC) insured bank aiming to blend new technologies with the traditional services of a bank.

OPY thinks the partnership can help it launch a US platform to facilitate Cross River’s origination of ‘buy now, pay smarter’ consumer loans.

The market was less thrilled. Openpay Group Ltd [ASX:OPY] share price is currently trading at $1.27 per share, down 2.3%.

ASX OPY - Openpay Share Price ChartSource: Tradingview.com

After much hype — led by high-flying Afterpay Ltd [ASX:APT] — the ASX BNPL sector is cooling off. OPY itself shed 55% over the last 12 months, well underperforming the ASX 200.

But is the new partnership a strategic move that can turn Openpay’s fortunes around?

Let’s delve into the details.

OPY partners with Cross River Bank

Openpay said today the strategic partnership with Cross River will allow it to facilitate Cross River’s origination of what OPY calls ‘buy now, pay smarter’ consumer loans and tap into the lucrative US market.

Cross River will provide Openpay with a lending platform and a ‘robust compliance framework’ to expand Openpay’s reach across the US market.

The collaboration will allow OPY to offer closed-end consumer loans in amounts up to US$20,000 with terms up to 24 months originated and funded by Cross River.

When a consumer applies for a loan on the OPY platform, the loan is underwritten by Cross River utilising OPY’s approved risk models and Cross River’s own credit underwriting framework.

Once the consumer selects their desired plan option, the loan is funded and originated by Cross River and serviced by Openpay, allowing it to administer the consumer experience end-to-end.

Cross River will serve as the lender for all OPY-branded loans originated in the US.

OPY will receive revenue from a mix of merchant fees, loan origination facilitation fees, and consumer charges on loans that OPY purchases.

Openpay’s US CEO Brian Shniderman said:

‘Cross River is in a unique position in the lending ecosystem, and we are thrilled to choose Cross River as our partner in the US where we are already experiencing incredibly strong demand for our plans.

‘This partnership will enable OPY to successfully fill a large void in the existing US market with our longer, larger, customized and interest-free product.’

How to Capitalise on the Potential Commodity Boom in 2021. Learn More.

OPY share price outlook

Openpay said it will use the partnership to continue focusing on its key verticals: healthcare, auto servicing, home improvement, private education, and large ticket retail industry sectors.

OPY also flagged it is expecting to announce additional partnerships in the near future, but no further detail was offered.

The market’s flat reaction to OPY’s announcement suggests investors are unsure about the commercial impact of the partnership with Cross River.

While OPY said it expects to record revenue via merchant fees and loan origination fees, no expected range was given. The financial boost to OPY’s top line is hard to quantify from today’s announcement.

And while moving into the large US market is an important strategic step, investors may be unsure if the Cross River partnership is what will see OPY take off in the US.

Now, if you are interested in fintech stocks, but are not necessarily keen on the saturated BNPL sector, then you may enjoy reading Money Morning’s latest report on three small-cap fintechs with exciting growth potential.

Click here to learn more.

Regards,

Kiryll Prakapenka,

For Money Morning

PS: Our publication Money Morning is a fantastic place to start on your investment journey. We talk about the big trends driving the most innovative stocks on the ASX. Learn all about it here

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

Kiryll Prakapenka

Kiryll’s Premium Subscriptions

Publication logo
Fat Tail Investment Research

Latest Articles

  • The next wave of AI winners
    By Callum Newman

    Hedge fund Coatue is putting their stake in the ground. They say AI is going to improve productivity and take down the US debt to GDP ratio. They think the Mag 7 will keep growing. But the next wave of big capital growth will come from different AI winners. The next wave of this tech is via AI “agents”. This could be big if we tee off similar tech breakout points…

  • Could the US People Repudiate the National Debt?
    By Brian Chu

    Could you imagine our financial system doing away with the massive debt load? Seems impossible, right? But there are signs suggesting this could happen in the future.

  • Trump to juice the AI supercycle even more
    By Callum Newman

    Today we’ll speculate that a new class of AI winners is going to emerge, in a thousand different ways. That’s not to say you can’t make money in the classic plays like Nvidia or Tesla. But Coatue have other ideas, which they float here…

Primary Sidebar

Latest Articles

  • The next wave of AI winners
  • Could the US People Repudiate the National Debt?
  • Trump to juice the AI supercycle even more
  • Copper: on the precipice of a historical breakout
  • How the “AI Flywheel” can save the global economy

Footer

Fat Tail Daily Logo
YouTube
Facebook
x (formally twitter)
LinkedIn

About

Investment ideas from the edge of the bell curve.

Go beyond conventional investing strategies with unique ideas and actionable opportunities. Our expert editors deliver conviction-led insights to guide your financial journey.

Quick Links

Subscribe

About

FAQ

Terms and Conditions

Financial Services Guide

Privacy Policy

Get in Touch

Contact Us

Email: support@fattail.com.au

Phone: 1300 667 481

All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.

Fat Tail Logo

Fat Tail Daily is brought to you by the team at Fat Tail Investment Research

Copyright © 2025 Fat Tail Daily | ACN: 117 765 009 / ABN: 33 117 765 009 / ASFL: 323 988