Splitit Payments Ltd (ASX: SPT) has announced a new agreement with Kogan.com Ltd (ASX: KGN) which could boost the share price of both companies today.
About Splitit and Kogan
Splitit is one of the “buy now, pay later” companies, competing with the likes of Afterpay Touch Group Ltd (ASX: APT) and Sezzle. However, Splitit is a bit different. Splitit customers must have a valid credit/debit card, as this is where the payments are charged monthly. Splitit also offers longer repayment terms than Afterpay.
Kogan.Com offers a variety of products and services including Kogan Retail, Kogan Marketplace, Kogan Mobile, Kogan Internet, Kogan Insurance and Kogan Travel. Kogan.Com aims to offer consumers price leadership through digital efficiencies.
Splitit’s services will soon be available when making online purchases through Kogan.com. This makes Kogan the first major Australian retailer to adopt Splitit’s service. It is expected to be available within the coming days.
This is an agreement that may prove to be mutually beneficial, and it could push both the Splitit and Kogan share prices higher today.
Splitit’s CEO and Co-Founder Gil Don said, “Kogan.com is one of Australia’s largest online businesses, with an active customer base of well over 1.5 million customers. It is the first major retailer in Australia to partner with Splitit, signalling our growth in the Asia Pacific region.”
Kogan.com CEO Ruslan Kogan said, “We are excited to be able to offer Splitit’s innovative solution to our customers in Australia, who will now have more flexibility in paying for their purchases”.
Splitit looks in desperate need of more large retailers, as their share price has fallen just shy of 50% in the last three months. This should provide a boost for Splitit shareholders and hopefully garner more attention from other large retailers.
As for Kogan, having another payment option for online purchases gives them an advantage over many other online retailers and it’s a good sign that they’re looking for more ways to make their products more accessible.
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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.