The Splitit Ltd (ASX: SPT) share price has avoided the market selloff and is trading slightly higher on Monday morning.
At the time of writing the buy now pay later provider's shares are up 1.5% to 37.5 cents.
Why is the Splitit share price pushing higher?
Investors have been buying the shares of the Afterpay Ltd (ASX: APT) rival following the release of an announcement which revealed a major business development.
According to the release, Splitit has partnered with payments giant Visa to help accelerate the distribution of instalment payments for merchants. In addition to this, the two parties will explore further opportunities relating to new product development.
Splitit's managing director and CEO, Brad Paterson, revealed that the company was excited to be joining forces with Visa.
He said: "We are excited to be working with Visa as part of the global instalment payment ecosystem. We share a similar vision to make it easier for consumers and merchants to pay and be paid in instalments."
What now?
The release explains that Splitit will leverage the Visa Developer Platform to participate in ongoing innovation of the instalment payments landscape globally.
It will also integrate its technology with Visa Instalment Solutions. This is a new capability that helps participating issuers and merchants give Visa cardholders more control over how a purchase is paid. Splitit will offer Visa Instalment Solutions to its merchant network.
Mr Paterson added: "Partnerships like this one are a major plank in our strategy to accelerate growth, and we look forward to working closely with Visa to help our merchant partners provide an enhanced customer experience."
However, the company appeared to warn investors not to get too excited by the news. Whilst acknowledging that partnering with Visa is a new and exciting relationship for Splitit, at this point in time, the company is not able to determine the economic materiality of the partnership due to the contingent nature of results that may be generated.
Visa has not commented on the partnership.
