Why Splitit saw its share price skyrocket 108% on Thursday
We examine the key takeaways from Splitit’s just announced Mastercard partnership.
Splitit share price surges on Mastercard announcement
In saying that, the first hour of trade proved quiet, with SPT opening at around 66 cents per share. The partnership announcement – not released until 10:58am – changed that trajectory drastically.
And while Splitit itself said that it could not quantify the ‘economic materiality’ of this parternship – given its contingent nature – investors nonetheless aggressively bid the stock higher during Thursday’s session.
Demonstrably, by around 11am the stock traded at 86 cents per share, 40 minutes later the stock had surged to $1.04 per share, and at its intraday peak it was bid as high as $1.51 per share (slightly off its all-time high), but still a staggering 128% higher than when it opened.
SPT finished the day at $1.375 per share (+108%).
Implications of the partnership
Looking at the core implications of the multi-year Splitit-Mastercard parternship, it was pointed out that the company would 'integrate its instalment solution with Mastercard's suite of technology as a network partner.' This, the company argued, would help merchants ‘deliver seamless and secure consumer experiences at checkout, both in store and online.'
Adding to that, the two companies are planning to collaborate on the development of instalment and related products; as well as 'explore accelerated collaborations with Mastercard's suite of instalment solution providers.'
Under this partnership, the current plan is to launch three pilot programs on a global scale. No definitive schedule was given on the rollout of these programs.
Zahir Khoja, Executive Vice President of Global Merchant Solutions and Partnerships from Mastercard spoke optimistically of the synergies between both companies, noting that he expected the partnership to positively contribute to the growth of business transactions and assist customers with budgeting practices.
Summarising his thoughts, Mr Khoja finished by saying:
'Our network and global reach, alongside Splitit's solution, aligns with our commitment of providing choice, control, and simplicity to consumers and businesses. Consumers walk away with payment options and businesses get paid in full, building consumer loyalty.’
Splitit's CEO, Brad Paterson was equally pleased, saying that the partnership 'is a fantastic way to broaden the distribution of our solution, leveraging Mastercard's incredible global reach, and build out a range of instalment services.'
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