The Splitit Payments Ltd (ASX: SPT) share price was up as much as 21% in early trade this morning after it announced a new partnership with EFT Payments Limited, a Hong Kong-based payment solutions provider. Here’s what you need to know.

About Splitit

Splitit offers consumers the ability to split the purchase price of basic products, competing with Afterpay Touch Group Ltd (ASX: APT). Shoppers can split their purchases into up to 36 interest-free monthly payments using their existing Visa or Mastercard.

Splitit made another big announcement this week, hiring a former Intuit Inc. (NASDAQ: INTU) executive to be the Managing Director of North American operations.

What Is EFTPay?

EFTPay is a payment solutions provider focused on digital wallet services. It is one of the key partners of Alipay in Hong Kong and merchants include Marriott, UGG, Kate Spade, Sunglass Hut, and Estée Lauder.

Chairman and CEO of EFTPay, Andrew Lo, said this partnership will significantly increase customer satisfaction.

“Creating personalized, omnichannel experiences is now getting more important than ever for brands,” he said.

“This partnership allows customers of our merchants a ‘buy now, pay later’ solution. The addition of Splitit’s cross-border offering gives our merchants such a solution without requiring the customer to apply for additional credit, significantly increasing customer satisfaction.”

The new contract is for a three-year term “unless terminated earlier”. EFTPay is required to satisfy minimum annual targets for merchant transactions.

The statement reads, “While the fees and targets are confidential and commercially sensitive in nature, Splitit considers that the EFTPay partnership will have a material impact on Splitit if EFTPay achieves its annual targets.”

What Will This Mean For Splitit?

It’s hard to say what the impact will be for Splitit because the announcement is very light on detail and doesn’t include any specific figures or targets and EFTPay is not a listed company so financial records are not available.

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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).

Disclosure: At the time of writing, Max does not own shares in any of the companies mentioned.