Splitit Payments Ltd’s [ASX:SPT] share price has risen by more than 9% just after lunch, and now sits at the 55.5 cent mark at time of writing.
Splitit is a payment solutions company that allows customers to pay by way of instalments. The company’s concept is similar to Afterpay in some ways, but the key point of difference is that it takes credit card details at the time an order is placed.
Why is the share price moving so much today?
The share price movement can be traced to an announcement from Splitit this morning, revealing the setup of a three-year partnership with GHL ePayments. GHL ePayments is a part of the GHL Systems Berhad, a leading payment solutions provider and one of the top merchant acquirers in the Southeast Asian region.
The aim of the partnership is to offer Splitit’s instalment solution to more than 2,000 online merchants in Malaysia, Thailand, Indonesia and the Philippines.
Considering how much money changes hands on GHL’s systems, Splitit investors will be pleased to be partnered up with such a formidable force in the region. GHL processes over A$350 million in total online and offline transaction value per month.
GHL merchants under the new agreement will now be able to offer customers Splitit’s handy instalment payment solution: pay for online purchases with a credit card, and split the cost into interest-free monthly payments — with no extra fees.
With the recent success of Afterpay Touch Group Ltd [ASX:APT], it’s easy to see how this could become huge…
Both parties happy with the deal
Splitit’s CEO and co-founder, Gil Don, was enthused by the agreement with GHL. In the release he said:
‘This partnership allows us to continue our growth in APAC and develop our presence in multiple industries, in particular the travel sector. We are delighted to offer GHL merchants a simple way to boost sales and improve customer satisfaction by offering interest-free instalments at the checkout.’
GHL Systems Berhad’s CEO, Danny Leong, was also glowing in his praise of the deal.
‘We are excited to add Splitit to our list of world-class payment services, enabling our merchants to offer greater payment flexibility to their consumers. Splitit’s non-lending offering is unlike any other payment player’s and we believe this partnership will help us continue our growth as ASEAN’s trusted payment experts.’
Payment technology/fintech is now an increasingly competitive market, and it can take consumers a while to trust a new product or way of paying for something. Going forward, Splitit will be looking for more major deals to further its growth.
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For Money Morning