On Thursday, buy-now-pay-later Splitit announced that it will be teaming up with Mastercard to accelerate the adoption of instalment payment globally. Soon after the announcement of the multi-year agreement with Mastercard, shares of the New York-based ASX-listed company Splitit soared by 108% at $1.375.
More about the Mastercard and Splitit Deal
Through the multi-year agreement signed, BNPL Splitit aims to leverage Mastercard’s network of global partners to scale and extend the instalment payment option to merchants and customers. The BNPL company will also integrate its instalment payment solution with Mastercard’s suite of technology to enable merchants to deliver a secure and seamless checkout experience.
The ASX announcement said Mastercard’s Application Programming Interface (API) and Payment Gateway Services (MPGS) technology also will enable a scalable and systemic way to offer Splitit’s instalment solution.
The initial agreement with Mastercard is for 5 years. The announcement of the deal came after Splitit’s latest May investor update. The update showed the company’s record growth in sales volume and usage that resulted in record merchant sales volume of 321%, as compared to May 2019.
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BNPL Splitit’s listing on the ASX
US-based Israeli BNPL Splitit Payments is an international instalment payments solutions provider. The company allows its customers to pay for purchases with a debit or credit card by splitting the cost of the product into fee-free and interest-free monthly payments. The company got listed in the Australian Securities Exchange in January 2019 in an initial public offering (IPO) of $12 million. 60 million shares were issued at a share price of $0.20 each. The company listed in the ASX with a capitalization of $54 million
According to a statement provided to the ASX, BNPL Splitit currently has 380 active merchants and a presence across 27 countries. In 2018, about 118,000 shoppers use their service that had a transaction value of approximately $94 million. Apart from its buy now, pay later service, Splitit launched a ‘Get now, Pay later’ service last year, that allows customers to try an item for up to 90 days before the payment is charged to their credit or debit card.
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