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Why Splitit saw its share price skyrocket 108% on Thursday

We examine the key takeaways from Splitit’s just announced Mastercard partnership.

SPT Source: Bloomberg

Splitit share price surges on Mastercard announcement

ASX-listed fintech Splitit (SPT) saw its stock skyrocket on Thursday, after the company announced that it had secured a multi-year partnership with global payments heavyweight Mastercard (MA).

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.'

How to trade Splitit

What do you think: are you bullish or bearish on Splitit’s prospects? Trade accordingly. For example, you can trade Splitit shares and other ASX-listed stocks – both LONG and SHORT – through IG’s world-class trading platform now.

To buy (long) or sell (short) Splitit with CFDs, follow these simple steps:

  1. Create an IG Trading Account or log in to your existing account
  2. Enter ‘Splitit’ in the search bar and select it
  3. Choose your position size
  4. Click on ‘buy’ or ‘sell’ in the deal ticket
  5. Confirm the trade

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

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