Why the Splitit (ASX:SPT) share price is on the move today

Meanwhile, QuickFee has entered a trading halt after announcing a $17.5 million capital raising to fund its 'interest free' partnership with Splitit.

Splitit is a somewhat unique play on BNPL, providing credit card based instalment solutions to businesses and retailers. Conversely, QuickFee offers a payment platform for professional services firms, allowing clients to pay by instalment while the firms receive payment in full. Hence, working in largely the same way as BNPL provider Afterpay Ltd (ASX: APT).

Splitit partners with QuickFee

The Splitit share price is moving higher as the company announced the QuickFee deal would enable the clients of accounting and law firms in the US and Australia to pay their fees on credit cards using Splitit's instalment solution.

Splitit will be integrated directly to QuickFee's payments portal, complementing the existing finance offering to clients and firms. Through the new product offering using Splitit technology, QuickFee has an opportunity to expand its customer base to include smaller firms that typically fall outside its credit risk framework. This could grow its addressable market for the new interest free product by 650,000 accounting and law firms in the US alone.

QuickFee share price halted

QuickFee has entered the strategic agreement with Splitit to expand its addressable market. QuickFee is funding the rollout through a placement to raise $15 million, and a share purchase plan that aims to raise a further $2.5 million.

The funds raised will substantially scale up the customer acquisition team, predominantly in the US, to fund the significant anticipated growth of the receivables book with the Splitit opportunity. There will also be money spent on research and development for future product releases.

The new interest free product broadens QuickFee's product suite in line with the company's strategy of becoming a market leader in the advice now, pay later market.