Splitit (ASX:SPT) share price edges higher on new product launch

The Splitit Ltd (ASX: SPT) share price is edging higher today after the company launched a new payment gateway. Here are the highlights.
The post Splitit (ASX:SPT) share price edges higher on new product launch appeared first on The Motley Fool Australia. –

impact on asx share price of new product represented by colourful letters spelling product launch

Splitit Ltd (ASX: SPT) shares are edging higher after the company announced the launch of a new payment gateway designed exclusively for instalment payments. At the time of writing, the Splitit share price is trading 0.63% higher at 80.5 cents.

Let’s take a closer look at the company’s latest news.

What’s driving the Splitit share price?

The Splitit share price is in the green today after the company announced that, following a successful beta phase, it has launched ‘Splitit Plus’ to merchants across the United States. A wider global rollout is expected to commence in the second half of this year. 

Splitit shares have been struggling this week after the fintech released what some believed to be a less than impressive first-quarter update yesterday. 

The new platform, Splitit Plus, is an integrated payment gateway that has been built through leveraging the company’s partnership with US payment processing giant, Stripe.

According to Splitit, the technology “provides merchants an all-in-one platform combining Splitit’s instalment payment technology with a card processing solution for the instalments”. This allows for a more seamless activation process in which merchants can offer instalment payments on credit cards to customers on the same day. 

Splitit CEO Brad Paterson commented on the new feature, saying:

We created Splitit Plus with a customer-first approach to provide an exceptional merchant experience with Splitit. This innovation of a payment gateway built exclusively for installments makes it a fast, simple solution for merchants of any size to begin accepting installment payments in minutes.

Splitit Plus to drive revenues

According to Splitit, the new offering is expected to result in incremental revenues for the company as it will now receive a payment processing fee on top of its existing instalment fees. This will be charged to merchants at a simplified, all-in-one rate. 

Paterson believes the simplified merchant experience and onboarding process should accelerate merchant acquisition in the future. He said:

We believe that Splitit Plus puts us in a strong position to continue our exciting growth trajectory. Offering a faster and simpler onboarding experience and all-in-one fee structure allows us to accelerate merchant acquisition for smaller and larger merchants alike, while meeting the growing demand from merchants to add Splitit to their site or store.

Splitit share price playing catch up

The Splitit share price has been significantly underperforming buy now, pay later (BNPL) leaders such as Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) lately.

The company’s quarterly update on Wednesday revealed negative quarter-on-quarter growth. This signals a diverging performance between Splitit and its BNPL counterparts. Year to date, Splitit shares have fallen by around 38%. However, the company’s shares are still up by around 70% over the past 12 months.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Splitit (ASX:SPT) share price edges higher on new product launch appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!