The Splitit Ltd (ASX: SPT) share price has risen 7% in early trade after announcing a new partnership to the market.
Splitit offers consumers the ability to split the purchase price of basic products (e.g. lemons, toilet paper or both). Shoppers can split their purchases into up to 36 interest-free monthly payments using their existing Visa or Mastercard.
Splitit’s New Partnership
Splitit announced that it has signed a new partnership agreement with US eCommerce provider Ally Commerce to offer Splitit’s instalment payment option to its large enterprise merchants.
According to Splitit, Ally Commerce provides a platform for brand manufacturers to sell direct to consumers online. It offers product listing, pricing and promotion, analytics, inventory, fulfilment and shipping technology to large, high value merchants in the US. Ally Commerce is backed by UPS, a global logistics leader, which is a strategic investor in Ally Commerce.
Under the five-year partnership, Ally Commerce will offer its merchants Splitit’s interest and fee free monthly instalment option for online sales. The first merchant to adopt it will be Respironics Colorado, which is part of sleep and respiratory care company Phillips Respironics (which generated €1.7 billion of sales in 2018), which is ultimately owned by Phillips.
Splitit CEO and Co-Founder Gil Don said: “Ally Commerce is a key addition to our strategic partnerships and will accelerate the growth of our merchant customers in North America.”
This agreement is part of Splitit’s ongoing strategy to rapidly scale through large partnerships with large global organisations to provide access to multiple merchants.
Splitit’s latest win follows recent partnerships with EFTPay and GHL ePayments.
The Splitit share price has fallen over 75% since its all-time high in March as investor excitement fades. But, it’s announcements like this that could cause a bit of recovery. But, I think there’s a lot of competition in the industry and it’s too early to say whether Splitit will be a winner or not yet.
I’d rather invest in the growth shares in the free report below instead where strong financial progress has already been made.
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