The Splitit Ltd (ASX: SPT) share price has defied the market selloff and pushed higher on Tuesday.
In morning trade the shares of the Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) rival are up 1.5% to 67 cents.
Why is the Splitit share price racing higher?
Investors have been buying the buy now pay later provider's shares after the release of a positive update this morning.
According to the release, Splitit has signed a partnership with U.S. payments platform giant Stripe.
Stripe powers online payments worldwide and is currently processing hundreds of billions of dollars every year on behalf of millions of businesses.
The partnership agreement will see Splitit's solution integrated with Stripe Connect to streamline merchant onboarding and enhance the merchant experience. Management believes this will enable Splitit to scale significantly faster globally.
The integration will also improve Splitit's funded model process by automating acceptance and movement of money for all funded transactions. This is expected to significantly improve the merchant experience with multi-currency support and improved reporting tools.
A "significant strategic development."
Splitit believes the Stripe integration is a significant strategic development in its product and expects the benefits of the integration to have a material, positive impact on its merchant acquisition rate.
Splitit's CEO, Brad Paterson, said: "We are delighted to be partnering with a global leader in payments technology. With Stripe, we are able to not only immensely grow our capabilities to accelerate growth but continue to reinforce our commitment to providing the best possible merchant experience for installment payments."
Jeanne DeWitt Grosser, Head of North America Revenue and Growth at Stripe, spoke very positively about the agreement. She said: "Stripe's global infrastructure will make it even easier for businesses around the world, from Manchester to Melbourne, to get started with Splitit, enjoying higher conversion rates and bigger basket sizes. We're delighted to partner with Splitit to accelerate their global expansion and improve the experience for merchants on their platform."
