Kiwi innovator Shaun Quincey set up Genoapay using the computers at his local public library in Auckland less than three years ago, and says the platform is already servicing more than 1,000 merchants. After attracting $1 million of funding from an accelerator programme in 2017, it was acquired in December 2018 by consumer finance business Latitude Financial Services.
Latitude has added Genoapay to its portfolio alongside Gem Visa and other products.
Genoapay provides a no interest payment instalment service, allowing shoppers to pay off purchases totalling up to $1,000 over 10 weeks.
In its early stages, Genoapay targeted the service sector, partnering with businesses like hairdressers, dental clinics, automotive mechanics and veterinarians. This strategy allowed Genoapay to grow and gather momentum while operating in a niche competitors did not target, but it’s now begun to move into retail over the last 12 months.
“We’re having outstanding results in the retail sector,” Quincey says.
Genoapay’s key difference against competing buy-now pay-laters is that it offers consumers the opportunity to pay off their purchase in 10 installments, rather than the standard four.
“The power of that for the retailer is that they’re able to advertise at a 10 percent price point.”
Quincey says adding Genoapay to a merchant’s payment options can boost their sales instore and online. He explains that customers appreciate a payment option that avoids traditional debt, and many Genoapay shoppers use the platform as a geolocation tool to help them decide who to shop with.
Targeting local people in local areas began as a strategy linked to Genoapay’s roots in the service industry, but has proven to be a “really powerful marketing tool” across the board. Foot traffic and strengthening community ties is important to all merchants, Quincey says.
A Hamilton hair and beauty salon used its Shopify ecommerce platform in combination with a Genoapay partnership to net a significant increase in sales.
“They were a small business, owner operated, and we were able to increase their revenue by 50 percent, so that was a great result,” Quincey says.
Genoapay also markets to its consumers on a ‘daily deals’-style platform which puts the 10 percent cost of first payment at the fore, allowing the merchant to take advantage of these platforms’ popularity without devaluing their product through discounting.
The platform has partnered with multi-category retailer Harvey Norman across its ecommerce store and all bricks and mortar outlets nationwide since early April.
“We were obviously delighted to work with them to launch a buy-now pay-later solution into stores.”
The next horizon for Genoapay is Australia.
“We’re very excited to be launching into Australia later this yea, says Quincey.
Quincey is bullish about Latitude Pay’s prospects in a market where one major competitor processes approximately five percent of Australia’s total online retail. He acknowledges other players are embedded in the Australian market, but says having Latitude in Genoapay’s corner lends the platform superior scale and partnerships with local retailers.
Genoapay’s rapid growth has lost Quincey “a lot of hair”, he says, but he’s thrilled by the chance to connect with exciting retail partners and secure Genoapay’s place in the market. He says the platform’s new scale has also benefited its retail partners by exposing them to a wider network of consumers.
“We certainly didn’t anticipate the growth, or its beneficial impact on our merchant partners.”