- Rewardle (RXH) shares climbed today after the company agreed to temporarily forgo service fees from BNPL company SplitPay in exchange for shareholdings
- Since it was founded in 2018, SplitPay has raised over $2 million from investors and secured a partnership with Novatti Group (NOV)
- Rewardle says converting the cash fees into SplitPay shares gives it direct exposure to the BNPL sector and the UK market
- The companies have agreed on a two-year contract with a minimum fee of $5000 per month
- Rewardle is up 108 per cent, trading at 2.7 cents per share
Rewardle’s (RXH) shares climbed today after the company agreed to forgo service fees from SplitPay in exchange for shareholdings between 0.5 per cent and one per cent.
Rewardle will waive the $30,000-$60,000 fee for three months from November 1 2021, however the arrangement may be extended beyond this term if both companies agree.
The company’s binding term sheet with SplitPay was announced on April 29 2021 and agreed on a two-year contract with a minimum fee of $5000 per month based on resources used.
SplitPay is an unlisted, buy now, pay later (BNPL) company who aims to grow within the UK and European markets, alongside Afterpay, Klarna, and ZipPay.
Since it was founded in 2018, SplitPay has raised over $2 million from investors and secured a partnership with Melbourne-based technology company Novatti Group (NOV).
Rewardle Founder and Executive Chairman Ruwan Weerasooriya said SplitPay can gain new market exposure and more opportunities through their partnership.
“Through our work with SplitPay over recent months, we’ve identified a number of high growth opportunities where we can leverage our experience, capabilities and IP to help them innovate, differentiate and grow,” Mr Weerasooriya said.
“Converting of our cash fees into SplitPay shares gives us direct exposure to the BNPL sector, the UK market and upside generated from our services work. It also elevates the nature of our relationship from service provider to shareholder and creates a stronger basis for establishing a deeper strategic relationship.”
Rewardle was up 108 per cent, trading at 2.7 cents per share at 12:46 pm AEDT.