A deal that appears to make a lot of sense for both parties pushed the price of Splitit up to trade at $1.58 at the time of writing, while the QuickFee share price remains stable at 64 cents.
What’s the deal with QuickFee and Splitit about?
Both fintech companies operate on the ‘buy now, pay later’ model, or in the case of QuickFee, it’s ‘advice now, pay later’.
QuickFee operates in the white-collar space, allowing people to retain services such as accounting and legal work and pay for it at a later date.
While Splitit gives users the ability to use credit they already hold, such as their credit card, and split their payment into smaller, easier to manage payments.
What the new deal between the two companies will allow is that Splitit will get a larger foothold in the US due to QuickFee already being established there.
In return, QuickFee will be able to offer their client base the ability to better manage their cash flow and reduce the time to be paid by providing more flexible payment options to their customers.
QuickFee processed more than US$300 million worth of payments in FY20 via its online payment portal for more than 400 accounting and law firms across the US alone.
The partnership appears to be a sensible and natural progression for both companies.
Where to from here for QuickFee and Splitit?
For the time being QuickFee remains in a trading halt at 64 cents, just above the support level of 63 cents, after coming up off the level of 56 cents. Should it continue its move up, then the level of 72 cents may become the focus.
Splitit has moved sideways for a short while, but the positive news of the new partnership has pushed the price north.
Should this continue, then the levels of $1.71 and $1.91 may provide future resistance. Conversely, if the price were to fall, then the level of $1.36 may be strong enough to halt the fall.
With over 650,000 accounting and law firms in the US alone, this deal looks to be shaping up as something great for both QuickFee and Splitit.
For Money Morning
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