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Afterpay rival Splitit’s international strategy sees share price climb

Finance
ASX:SPT
30 August 2019 01:19 (AEST)

Buy now, pay later service Splitit saw its revenue increase 193 per cent over the 2019 financial year.

Gross profits also saw a huge jump, up 468 per cent to US$721,000. However, this figure is overshadowed by a net loss totalling US$3.8 million.

Splitit’s CEO and Co-Founder Gil Don expect the business will continue to rapidly grow internationally because it is held to different responsible lending requirements to many other buy now, pay later providers.

According to Gil, this is because “our end customers are simply utilising credit already available through their banks via their existing card accounts.”

“Established financial services players can use our platform to provide a responsible BNPL [buy now, pay later] offering to their customers,” he continued.

Splitit allows customers to pay back their purchases interest free, in up to 36 monthly instalments. The company highlights its bases approving the payments on users’ exisiting credit card limits, unlike many other buy now, pay later services.

The number of merchants using Splitit increased 121 per cent over the financial year, now totalling 509.

Major online retailer Kogan, music production software Ableton, and conglomerate giant Philips were all added to the portfolio in the first half of 2019, among others.

In the second half of the financial year, Splitit entered commercial partnerships with GHL and Ally Commerce, expanding its reach internationally. As it stands, the company has identified over 700 potential new merchants.

Going forward, the company aims to establish more partnerships with eCommerce platforms, payment processors, banks, and large multinational corporations, in order to reach more users around the globe.

Splitit’s share price is up 28.75 per cent today, currently sitting at $0.52 per share, as of 1:14 pm AEST.

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