Shares in Buy Now, Pay Later (BNPL) business Splitit Ltd (ASX: SPT) are up 16% at lunchtime today following the release of an announcement.
About Splitit
Splitit operates in the booming BNPL space and is one of the many companies in the sector offering consumers the ability to split the purchase price of basic products over a period of time. It’s the new form of the old school ‘lay-by’.
Splitit allows shoppers to split their purchases into up to 36 interest-free monthly payments using their existing Visa or Mastercard.
Splitit remains locked in a battle for relevance against fellow BNPL offerings from Afterpay Touch Group Limited (ASX: APT), Zip Co Ltd (ASX:Z1P) and Flexigroup Limited (ASX: FXL). These apps compete for space at online checkouts and in-store retailers.
Soon-to-be listed Latitude Financial Group Limited (ASX: LFS) has also begun offering a BNPL product called LatitudePay.
Today’s Announcement
Splitit has provided an update on its North American operations. One of the highlights in the announcement includes a new partnership with eCommerce platform Shopify to make Splitit’s solution available to Shopify’s network of more than 800,000 merchants across 20 countries.
Splitit has also singed new merchant agreements with leading US consumer brands Chili Technology, Eight Sleep, BlueFly, Ashford, Nili Lotan and Ace Marks.
In addition, a new business-to-business (B2B) agreement was reached with accountancy services provider 1800-Accountant, enabling it to offer a monthly instalment solution for the payment of customer invoices.
Is The Splitit Share Price A Buy?
The booming BNPL sector is an interesting space with the world’s two most powerful payment networks Visa Inc (NYSE: V) and Mastercard (NYSE: MA) watching on.
For now, I will be sticking with my Afterpay shares – I like the first mover advantage it has and its execution to date.
If you’re looking for a great overview of the differences between Splitit and the other uber-popular BNPL company Afterpay, consider reading Max Wagner’s article Afterpay (APT) Shares Vs. Splitit (ASX:SPT) Shares.
Or, if you think the BNPL space has become saturated and are looking for something else to invest in, you may want to read about the shares in the free report below.
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Disclosure: At the time of writing, David owns shares in Afterpay Touch Group Limited. He does not have a financial interest in any of the other companies mentioned.
