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Afterpay rival Splitit has rocketed 160% higher since Tuesday’s IPO

The Splitit Ltd (ASX: SPT) share price has built on yesterday’s strong gain with another impressive rise on Wednesday.

At the time of writing the newly-listed monthly instalment payments solution provider’s shares are up 37% to 52 cents.

This means the Splitit share price has now gained a whopping 160% since landing on the ASX boards yesterday at a listing price of 20 cents per share.

It also means that the company’s market capitalisation has now lifted to approximately $140 million.

What is Splitit?

Splitit is a technology company headquartered in Israel providing a cross-border credit card-based instalment solution to businesses and merchants.

It gives consumers the opportunity to pay for a product using their existing credit or debit cards but allows them to divide the total cost across as many interest-free payments as they feel is necessary.

Once the customer selects the time-period they want, Splitit charges their credit card every month until their plan is finished.

There are perks for merchants as well. They won’t be left out of pocket if a consumer cancels their card before the plan is complete, as the payment will be collected from the issuing bank instead.

How is it performing?

Like Afterpay Touch Group Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P), Splitit has been growing strongly.

In a business update released yesterday, management revealed that it now has 380 active merchants operating in 27 countries around the world.

It transacted with 88,000 new shoppers last year, taking the total number of unique shoppers to 118,000 at the end of the year. These shoppers generated underlying merchant transactions of $32 million, which was a record for the platform and a 269% increase on the prior corresponding period.

Whether or not it will be the next Afterpay, only time will tell. But it may be worth keeping an eye on.

In the meantime, I would be a buyer of these top shares that have been tipped as potential market beaters.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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