Splitit Share Price Up on New Google Japan Partnership (ASX:SPT)

At time of writing the share price of Splitit Payments Ltd [ASX:SPT] sits at $1.41, up 8.88%.

Splitit recently announced a new partnership agreement with Google Japan.

ASX SPT Share Price Chart

Source: Optuma

Splitit and Google team up

2020 was the year of the ‘buy now, pay later’ providers.

Across the sector most if not all companies saw their share price, usage rates, and revenue rise.

COVID-19 gave the entire sector a shot in the arm as people stuck at home went shopping online.

Splitit run a slightly different model to most, their system allows users to split up payments for goods while using their own credit card as the source of finance.

The model didn’t go unnoticed and gained the attention of Google.

Splitit announced recently it signed an agreement with Google to empower Japanese customers, allowing the use of instalment plans to make purchases from the Google Store in Japan for the first time ever.

In the coming weeks, Japanese customers purchasing Google’s new 5G phone, the Pixel 5, or Nest devices from the Google Store, will be able to split their payments into equal monthly instalments.

In Japan around 68% of adults hold a credit card, the highest usage level in Asia.

Splitit is the only instalment provider to service the huge Japanese credit card industry.

Splitit and the future

With a population of over 126 million, Japan is an enormous market for Splitit.

On the back of the announcement Splitit CEO, Brad Paterson, said:

This is one of the strongest case studies yet of our unique offering. We are working with Google in its effort to provide the best possible experience for its customers, and the seamless integration of Splitit into Google Store Japan means they never have to leave the platform.

Taking a look at the charts:

ASX Splitit Share Price Chart

Source: Optuma

At time of writing the SPT share price is trading at $1.41, breaking through the resistance level of $1.35. Should the move up continue, then the level of $1.71 may become the focus.

If the price falls back, then the levels of $1.35 and $1.11 may be enough to halt the fall.

Japan is currently in a lockdown due to COVID-19 and maintains that the Olympics will go ahead this year.

As Splitit and Google roll out their new offering the surrounding circumstances of the country may see usage of the service take up quickly and could lift the share price as well.

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Carl Wittkopp,
For Money Morning

Carl Wittkopp writes for Money Morning and has a diploma in Financial Planning. He specialises in technical analysis.

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