The Splitit Payments Ltd (ASX: SPT) share price is going nuts after it announced a new partnership with GHL ePayments to offer Splitit’s service to more than 2,000 online merchants in south-east Asia. Here’s what you need to know.
About Splitit
Splitit is one of the “buy now, pay later” companies, competing with the likes of Afterpay Touch Group Ltd (ASX: APT) and Sezzle. However, Splitit is a bit different. Splitit customers must have a valid credit/debit card, as this is where the payments are charged monthly. Splitit also offers longer repayment terms than Afterpay.
Splitit’s New Agreement
The agreement announced this morning is with GHL ePayments, part of the leading payment service provider GHL Systems Berhad, which is listed on the Kuala Lumpur Stock Exchange (KSE: GHLSYS).
GHL processes more than $350 million in online and offline transaction value every month and has a particular focus on the travel sector.
The partnership offers Splitit’s service to over 2,000 online merchants in Malaysia, Thailand, Indonesia and the Philippines.
Integration with GHL’s payment systems will allow merchants to go live with Splitit by simply selecting an option in a drop-down menu.
Splitit’s CEO and Co-Founder Gil Don said it’s a valuable growth opportunity for the company.
“This partnership allows us to continue our growth in APAC and develop our presence in multiple industries, in particular the travel sector,” he said.
Are Splitit Shares A Buy?
A lot of the enthusiasm around Splitit seems to have disappeared as the share price fell from as high as $1.62 to less than $0.50 over the last few months. The move into south-east Asia is an interesting one and it sets them apart from competitors.
Splitit may have a hard time competing with the likes of Afterpay in the Australian or US markets, but if they could focus on Asia or on a particular sector like travel then they could become the dominant player in a niche.
Either way, I won’t be investing in Splitit until I start to see strong cash flows and some profit. I’d rather invest in one of the growth shares in the free report below.
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Disclosure: At the time of writing, Max does not own shares in any of the companies mentioned.
