Splitit share price surges 7% higher on Kogan partnership news

The Splitit Ltd (ASX:SPT) share price has zoomed higher this morning after announcing a partnership with Kogan.com Ltd (ASX:KGN)…

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In morning trade the Splitit Ltd (ASX: SPT) share price has surged higher following the announcement of a key new partnership.

At the time of writing the payments company's shares are up over 7% to 67.5 cents.

What was announced?

This morning the company announced that it has signed an agreement with ecommerce company Kogan.com Ltd (ASX: KGN) to provide its instalment payment solution for online purchases in Australia through the Kogan.com website.

When the Splitit solution goes live on the Kogan website in the coming days, it will become the first major Australian retailer to adopt the platform.

Though it won't be the first buy now, pay later option on the website. At present Kogan.com already offers its customers the option to pay by both Afterpay Touch Group Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P).

The company advised that the partnership with Kogan is aligned with its strategic vision of partnering with Australia's largest retailers and providing consumers with a frictionless way to pay for purchases in interest-and-fee-free monthly instalments using their existing credit cards. Customers receive instant approval, without the need for credit checks, application, or registration.

Splitit's CEO and Co-Founder, Gil Don, appeared to be very pleased with the agreement.

He said: "Kogan.com is one of Australia's largest online businesses, with an active customer base of well over 1.5 million customers. It is the first major retailer in Australia to partner with Splitit, signaling our growth in the Asia Pacific region. We are seeing strong interest from major retailers around the world in offering our unique payment solution to their customers and it is great to have ecommerce platforms such as Kogan.com on board."

Kogan.com's founder and CEO, Ruslan Kogan, also spoke positively about the partnership.

He said: "Kogan.com is focused on making the most in-demand products and services affordable and accessible for Australians. We are excited to be able to offer Splitit's innovative solution to our customers in Australia, who will now have more flexibility in paying for their purchases."

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Kogan.com ltd. 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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