The Splitit (ASX: SPT) share price is currently up 93%. It’s going bananas after announcing a new partnership.
What is Splitit?
Splitit offers consumers the ability to split the purchase price of basic products (e.g. TVs, clothing, etc). Shoppers can split their purchases into up to 36 interest-free monthly payments using their existing Visa or Mastercard.
Why is the Splitit share price soaring?
Splitit announced today that it has signed a multi-year agreement with Mastercard to accelerate the adoption of Splitit’s instalment offering around the world.
The buy now, pay later business will integrate its instalment solution with Mastercard’s suite of technology as a network partner.
Mastercard and Splitit will also jointly develop instalment and related products. Splitit said that Mastercard’s Payment Gateway Services and Application Programming Interface (API) technology will enable a systematic and scalable way to offer Splitit’s instalment solution. The partnership will also explore accelerated collaborations with Mastercard’s suite of instalment solution providers.
Splitit CEO Brad Paterson said: “We are very excited to be partnering with Mastercard who share our strong commitment to accelerating the adoption of instalment payments globally. This is a fantastic way to broaden the distribution of our solution, leveraging Mastercard’s incredible global reach, and build out a range of instalment services. It’s a major plank in our strategy to grow through strategic partnerships to make Splitit a household name.”
The announcement didn’t have any financial numbers to analyse. Splitit said that at this point in time, it wasn’t able t determine the economic materiality of the partnership with Mastercard due to the contingent nature of results that may be generated.
This sounds like an exciting announcement, but it’s hard to gauge how much it adds to Splitit’s value without much of an understanding of what it could mean economically.
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Disclosure: At the time of writing, Jaz doesn’t own shares in any of the businesses mentioned.
