BNPLPay for Dummies: Why Ovanti’s 20-Year Deal Could Be a...

BNPLPay for Dummies: Why Ovanti’s 20-Year Deal Could Be a Financial Masterstroke

Ovanti (ASX:OVT) has signed a 20-year licensing agreement with BNPLPay Protocol — a blockchain-based lending platform that could significantly reduce funding costs, generate recurring revenue, and support aggressive BNPL growth in key markets like the US.

Here’s what it means in simple terms:

What is BNPLPay Protocol?

BNPLPay is a decentralised finance (DeFi) platform that connects:

• Stablecoin investors (e.g. USDC holders looking to earn interest)

• BNPL providers like Ovanti seeking funding to offer flexible payment options to consumers

Rather than borrowing from banks, BNPL providers tap into a global pool of crypto capital — often at lower cost and with more flexibility.

How it Works

• Investors deposit stablecoins into the protocol

• BNPL providers borrow those funds to finance "Buy Now, Pay Later" services

• Consumers repay their instalments to the BNPL provider

• The provider repays the borrowed capital with interest

• BNPLPay earns revenue from interest and fees, and distributes returns to investors

No First-Loss Capital Required

Traditionally, lenders require BNPL providers to contribute “first-loss capital” — money they must risk first if loans go bad.

Under this deal, Ovanti is not required to provide any first-loss capital. That means:

• Lower risk

• No capital tied up as collateral

• Greater flexibility to grow and scale

The 50% Revenue Share

The standout feature: Ovanti receives 50% of all BNPLPay Protocol revenue over the next 20 years. This includes:

• Interest Ovanti pays when it borrows

• Interest and fees paid by other BNPL providers

Example:

• Ovanti pays $50,000 in interest

• Other providers pay $50,000

• Protocol revenue = $100,000

• Ovanti gets $50,000 back

This could effectively cancel out Ovanti’s own borrowing costs, while giving it a long-term passive revenue stream as the protocol scales.