The Splitit Ltd (ASX: SPT) share price is on the move today following the release of its own third quarter update.
At the time of writing, the buy now pay later provider’s shares are up 1% to $1.47.
How did Splitit perform in the third quarter?
Like Sezzle, Splitit delivered strong growth in the third quarter of FY 2020.
According to the release, its Merchant Sales Volume (MSV) grew 214% year on year to US$70.9 million. This led to gross revenue of US$2.4 million, which was up 318% on the prior corresponding period.
Splitit’s CEO, Brad Paterson, commented: “Our high-growth trajectory continued strongly in Q3, with MSV and Revenue growing at particularly impressive rates. This growth was driven by our focus on innovation and a frictionless customer experience, which is helping us stand out from other solutions that offer new finance. This, along with our world class instalment product, overcomes the single largest challenge for e-commerce merchants of reducing shopping cart abandonment rates.”
Management notes that its self-onboarding is now live in the US, enabling merchant acquisition at scale. It also added over US$3 billion in addressable online merchant sales during the third quarter via new major brands. Both should be a boost to its growth in the fourth quarter.
As should its expansion into the professional services vertical in the US and Australia via its QuickFee Ltd (ASX: QFE) partnership and its new pilot with payments giant Visa.
The latter sees Splitit launching the first phase of its integration with the Visa Instalment API in time for the US holiday shopping season. Through the pilot, the Splitit platform will enable card issuers enrolled in the Visa Instalment Program to provide instalments for their cardholders.
Mr Paterson said: “With the continued support of shareholders via our recent financing, we are investing in our go-to-market strategies and expect these and our global partnerships with Visa and Mastercard to drive further growth in our business.”
“We recently launched Flex Fields, a new innovation from our team, to further tackle the cart abandonment challenge. We are also seeing the results of self onboarding beginning to drive up merchant numbers, which have already doubled compared to this time last year. Q4 is off to a fast start, and we’re excited to see the momentum continue as we close out the year,” he added.