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- Splitit Payments (SPT) releases its June quarter report, during which time it progressed its three growth pillars as it looks to execute a new strategy
- Revenue fell 13 per cent year-on-year to US$2.2 million (A$3.2 million), due to a shift to the unfunded model
- Merchant sale volumes have increased four per cent to US$94 million, reflecting underlying growth and the exiting of unprofitable merchants
- The company also increased net transaction margins and decreased expenditure as part of its goal to move towards profitability in the near term
- Splitit has also appointed payments industry veteran, Dan Charron, as Independent Non-Executive Director and CEO Nandan Sheth as Managing Director
- SPT shares are up 6.06 per cent to trade at 17.5 cents each as of 2:04 pm AEST
Splitit Payments (SPT) has released its quarterly report for the three months ending June 30, 2022.
Over the quarter, the company made progress across all three growth pillars (distribution partners, white-label and unlocking BNPL for issuers) as it looks to execute a new strategy.
Splitit has reported revenue of US$2.2 million (A$3.2 million) which is a 13 per cent drop from this time last year. The company said this was due to a shift to the unfunded model which reported a 27 per cent merchant sales volume (MSV) growth.
Despite a challenged economic environment, MSV increased four per cent to US$94 million which reflects continued underlying growth and the exiting of unprofitable merchants, according to the company.
Net transaction margins also increased 1.18 per cent (in absolute value) to 1.33 per cent, aligning with Spliti’s growing focus on maximising profits.
The company also reduced its operating expenses by 14 per cent to US$5 million.
With increasing margins and decreasing expenditure, Splitit undertook “significant steps” to reduce cash burn and move towards profitability over the near term.
“Our differentiated business model that unlocks existing credit for merchant funded
instalments is becoming the most viable alternative to the high friction and high risk legacy BNPL services,” CEO Nandan Sheth said.
“The industry is starting to recognise that Splitit’s unique model stands apart in a crowded space of players extending unsecured loans to subprime consumers.”
Splitit is expecting the MSV and revenue benefit to come into fruition in late 2022.
The company will continue to focus on its strategic pillars to drive growth and improve profitability, including signing major global merchants and adding new large card networks.
Additionally, Splitit has appointed two new directors to its board.
Payments industry veteran Dan Charron joined the board as Independent Non-Executive Director, and company CEO Nandan Sheth has been appointed Managing Director.
Mr Charron has over 30 years of experience in the fintech industry, including senior executive and board level roles at some of the largest fintech companies in the world.
He most recently served as Chairman Global Business Solutions at Fiserv, after 14 years at Chase Paymentech.
“We are delighted to have Dan and Nandan join the Board,” Splitit Chair Dawn Robertson said.
“Dan is an accomplished industry veteran. His extensive experience in merchant services, payments processing and technology will be very valuable in supporting Nandan and his team in executing on our growth strategy.
“In the short time he has been CEO, Nandan has already made a considerable difference in re-setting the vision for our company while demonstrating the ability to drive meaningful partnerships and merchant relationships.”
SPT shares were up 6.06 per cent on the market to trade at 17.5 cents each as of 2:04 pm AEST.
