The Splitit Ltd (ASX: SPT) share price could be in focus today after revealing its latest partnership.
Splitit partners with ChargeAfter
The buy now, pay later business said that it’s partnering with ChargeAfter, which it described as the leading global network of personalised buy now, pay later and point of sale financing for merchants, adding Splitit to complement its existing portfolio of consumer financing offerings.
ChargeAfter connects retailers and lenders to offer consumers personalised point of sale financing options during shopping and at checkout from multiple lenders. Merchants on the ChargeAfter platform include leading iconic US retailers across home appliances, furniture, mattresses, consumer electronics and automotive, as well as other verticals.
Splitit will be the first financing-free installment payment option available on the platform. The company said that shoppers now have a more intuitive and flexibile way to use the hard-earned credit on their existing credit cards to spread payments over time.
In the market update telling investors about the partnership, Splitit said that the benefit for merchants offering Splitit is attracting and boosting conversion rates of higher-value customers. Splitit’s average order value (AOV) is over $1,000. That’s around four times higher than most other buy now, pay later alternatives.
Management comments
Splitit CEO Brad Paterson said: “The partnership with ChargeAfter extends our reach introducing Splitit to even more merchants and shoppers.
“Not every consumer is looking to open a new line of credit for the purchase and just want a smarter way to use the credit they have already earned. We serve this type of shopper by giving them the flexibility to use their existing credit cards to spread payments over time without additional fees.”
Summary thoughts on Splitit and the share price
Splitit is a rapidly growing BNPL business. I’m just not sure how much profit it’s going to be able to generate in the future. The Splitit share price has more than halved since February and it’s at the lowest point it has been over the last 12 months. However, with so much competition in the space, it’s not a business that’s currently on my watchlist.
