The Splitit Ltd (ASX: SPT) share price is racing higher today after the buy now, pay later (BNPL) provider released a trading update for the month of May.
At the time of writing, Splitit shares are sitting 20.15% higher for the day after rallying as much as 42.54% in early trade.
What did Splitit announce?
The BNPL small-cap reported record monthly merchant sales volume (MSV) of US$25.8 million in May, representing increases of 321% compared to May 2019 and 39% compared to April 2020.
Breaking this down in terms of geography, MSV growth in North America and Europe jumped 336% and 548%, respectively, compared to May 2019. This has been supported by partnerships with global e-commerce retailers such as Purple, Nectar Sleep and Canyon Bicycles.
Splitit also announced a notable increase in total unique shoppers, with the number of shoppers successfully making a purchase using its platform surpassing 290,000 in May. The last 2 months alone have seen the addition of 45,000 new shoppers transacting through Splitit's platform.
On the merchant front, Splitit now has 964 merchants offering its payment solution. This is up 12% from 862 at the end of March 2020.
Splitit's average order value also improved in May, increasing to US$939 from US$737 in the first quarter of FY20 ending 31 March 2020.
On the whole, the company attributed these strong results to the onboarding of new large merchants in 2020, the growing shift to e-commerce, and customers increasingly using its payment solution to manage their cash flow.
Commenting on Splitit's performance, CEO Brad Paterson said:
"We continue to see strong merchant demand as eCommerce expansion accelerates, while merchants are actively pursuing strategies to improve their conversion rates during and beyond the Coronavirus pandemic. Splitit is seeing growth in its share of checkout with merchants as it helps them meet changing consumer needs for greater flexibility and longer payment plans."
