Why the Splitit share price is soaring today

Splitit offers a different buy now, pay later service to Afterpay Ltd (ASX: APT) or Z1P Co Ltd (ASX: Z1P) as it lets users pay for goods over periods up to two years.

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The Splitit Ltd (ASX: SPT) share price is up 8 per cent to 69 cents today after the buy now, pay later start up told investors it processed more than a $1 million in underlying merchant sales over Black Friday.

Over the four day Black Friday to Cyber Monday shopping weekend it processed more than US$3 million in sales.

Splitit's management also claim it's growing strongly in North America. 

The fintech reported its average order size over the period was US$820 with the average number of instalments per purchase also growing.

Splitit offers a different buy now, pay later service to Afterpay Ltd (ASX: APT) or Z1P Co Ltd (ASX: Z1P) as it lets users pay for goods over periods up to two years. Whereas Afterpay users must pay four instalments every two weeks unless they pay the debt due early. 

Splitit hit the ASX boards in January 2019 after a 20 cents per share IPO and quickly rocketed to as high as $2 per share just weeks later. Since then it's retreated to 69 cents per share today as its operating growth metrics have not met high expectations. 

Given the excitement around this space the stock is likely to remain volatile in 2020.

Tom Richardson owns shares of AFTERPAY T FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. 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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