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 APT-AU – 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%.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
European Central Bank meeting
Learn about how the ECB meeting affects interest rates and price stability ahead of the next announcement.
- How might the next meeting affect the markets?
- What are the key rate decisions to watch?
- Why is the Governing Council announcement important for traders?
Live prices on most popular markets