Splitit share price soars 10% after announcing key partnership deal
The three-year partnership deal will see Splitit’s payment solutions used by more than 2,000 new merchants across Malaysia, Thailand, Indonesia and the Philippines.
Splitit Payments Limited, the A$169.14 million payment solutions company, today announced a major partnership deal with Malaysian-listed GHL ePayments.
As part of this partnership, over the next three-years GHL will 'offer Splitit's instalment solution to more than 2,000 online merchants in Malaysia, Thailand, Indonesia and the Philippines.’
Investors were evidently pleased with news of this deal, bidding Splitit's share price up as much as 10.89% during Monday's trading session.
Specifics of the Splitit-GHL deal
GHL is a heavy-hitter in ASEAN’s payments space, all up ‘processing over AUD $350 million in total online and offline transaction value per month via its network of large and small merchants.’
Centrally, the core of this agreement will give more than 2,000 GHL merchants the ability to make use of Splitit’s instalment-based payment options.
While no time frame was specified regarding the set-up period, it was noted that once Splitit has been fully integrated into ‘GHL's payment systems, each merchant will be able to easily and swiftly go live with Splitit via a simple selection from a drop-down menu.’
Why this partnership matters
From a growth perspective, Splitit's CEO and co-founder, Gil Don pointed out that the GHL partnership will allow the company to ‘continue our growth in APAC and develop our presence in multiple industries, in particular the travel sector.’
CEO of GHL Systems, Danny Leon, further added that: 'We are excited to add Splitit to our list of world-class payment services.'
Indeed, when considering the growth potential of this deal – the investor euphoria that saw Splitit’s share price rise as much as 10.89% during today's trading session is not without merit.
Given that GHL processes as much as A$350 million in transactions each month – investor enthusiasm is likely linked to the potential of Splitit capturing a small, but significant portion of those transactions.
A relevant comparison here may be to Afterpay Holdings Limited – another buy now pay later solutions company that witnessed exponential growth as it aggressively gained market share in Australia’s e-commerce space.
As it stands, a massive 10% of all e-commerce transactions are processed through Afterpay’s platform.
Of course, whether Splitit Payments Limited could possibly see similar success is ultimately for customers and investors to determine. Even still, news of this new deal, which should see the Splitit system integrated into over 2,000 online merchants, is certainly a positive step forward for the young company.
Year-to-date Splitit shares have risen 34%.
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