The Splitit Ltd (ASX: SPT) share price is soaring after partnering with Google in Japan.
Splitit is one of the smaller buy now, pay later operations on the ASX. It enables customers to pay for purchases with an existing credit card by splitting the cost into interest fee free monthly payments without additional registrations or applications.
Google Partnership
Splitit announced today it has signed an agreement with Google to empower Japanese customers to use instalment plans to make purchases from the Google Store in Japan.
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.
Splitit said that this partnership marks the next phase of its expansion into Asia as it continues to grow its global platform footprint.
The company couldn’t say how much money this agreement would make due to the variable nature of revenues which are dependent on the customer uptake of the services.
Management comments
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.
“Splitit is the only instalment provider to service the huge credit card industry, with 68% of adults in Japan holding a credit card, the highest in Asia. Splitit does not issue new credit to consumers, but rather allows existing credit card holders to make higher value purchases more easily, without incurring additional costs or fees. We are excited to allow Google customers to use their existing credit to pay for their new Pixel 5, Nest or Chromecast products.”
Summary thoughts
This agreement may not turn into a gigantic amount of earnings for Splitit, but I think this could be a good partnership for Splitit to point to when advertising to other clients. If Splitit manages to win other Google Stores in different countries then that could open up much more earnings.
Splitit could be one to watch. But I’m not sure about what the right price to buy shares would be. I prefer other ASX growth shares in the payments space such as Pushpay Holdings Ltd (ASX: PPH) or EML Payments Ltd (ASX: EML).
