Splitit shares surge 20% on 800,000+ merchant opportunity

Splitit’s share price action

Growth has always been the name of the game; or at the very least, the prospect of it.

In that vein, a blockbuster announcement from the fast-moving, ASX-listed fintech Splitit (ASX: SPT) has seen its share price soar by as much as 20% today.

Specifically, Splitit today reported that it had, 'signed an agreement with eCommerce platform Shopify to make available Splitit's Buy Now Pay Later (BNPL) solution to Shopfiy's network of more than 800,000 merchants across 20 countries.'

The company continued, pointing out that:

'Splitit's technology-based solution has been integrated with Shopify's platform and is now listed directly inside Shopify as an integrated payment gateway.’

For reference, the approximately $37bn Shopify has rose to fame in recent years, bolstered by intuitive design and the simple proposition of helping customers (with no technical expertise) build an online store.

Combine these stores (read 800,000 plus Shopify merchants) with Splitit’s BNPL solution, and today’s share price bump should come as little surprise.

In response to this announcement, Head Trader and Founder of Asenna Capital, Assad Tannous, tweeted that:

‘The announcement could be a company maker. When they announce deals with big companies they usually get a lot of media attention.’

There’s more, mind you. Splitit also announced that it had reached an agreement to partner up with the finance platform Divido. Though with a less significant user-base of approximately 1,000 merchants, banks and other partners – this move still speaks to Splitit’s growing presence on a global scale.

Finally, the company also pointed out that it had secured partnerships with a number of established brands in North America. Included among these are: Chili Technology and Eight Sleep, BlueFly, Ashford, Nili Lotan and Ace Marks.

As of 16:47 AEST, Splitit’s share price traded for A$0.70, a far cry from its all-time-high of A$2.00.

CEO comments

Speaking of today's potentially ‘company making’ agreement with Shopify, Brad Paterson, Splitit’s current CEO, noted that:

'These new agreements are in line with our strategy of building both our base of active merchants in key verticals and scaling through strategic partnerships. North America has become our largest region and represents our most significant growth opportunity.'

Funnily enough, Splitit (ASX: SPT) didn’t earmark today’s media release as price sensitive.

Surely a typo.

Practise trading Australian stocks with an IG demo account now