Why the Splitit (ASX:SPT) share price is up 7% this morning

The Splitit Payments Ltd (ASX: SPT) share price is climbing higher after announcing its latest global partnership deal.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Splitit Payments Ltd (ASX: SPT) share price is on the move this morning. Shares in the Aussie payment solutions provider charged more than 4% higher after announcing a new global partnership deal. At the time of writing, the Splitit share price has retreated slightly, trading at 83 cents, up 6.41%.

graph coming from man's hand

Image source: Getty Images

Why is the Splitit share price climbing higher?

Splitit has this morning announced a new global partnership with UnionPay International. That is part of China UnionPay, the provider of bank card services and a major card scheme in mainland China.

UnionPay International will integrate Splitit into its network as part of the new deal. That will give UnionPay cardholders and those accepting UnionPay the chance to use Splitit's instalment payments product.

The Splitit share price jumped more than 7% at the open on the back of this morning's news. The new deal will open up Splitit's solutions to over 55 million merchants on the UnionPay global acceptance network. That includes over 32 million merchants outside of mainland China. The offering will be active from June 2021 onwards.

Splitit CEO Brad Paterson said:

Partnering with UnionPay opens up our solution to UnionPay credit cardholders, building on our existing card partner networks. It combines our unique instalment solution and global reach with UnionPay's powerful cardholder base.

He also added that:

The partnership is another significant milestone in Splitit's Asia Pacific expansion strategy to boost consumer adoption and merchant acceptance.

The Splitit share price is on the move despite the actual value of the agreement with UnionPay International being currently unknown.

That's due to the "contingent nature" of the results that may be generated by the agreement. According to the release, Splitit doesn't see much short-term economic benefit for the company. However, it will support the company's strategic growth plans.

Foolish takeaway

The Splitit share price jumped as much as 7.7% in early trade after its latest global partnership deal. The UnionPay International deal will expand Splitit's Asia Pacific reach and continue to fuel growth for the Aussie payments group.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

A girl sits on her bed in her room while using laptop and listening to headphones.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing session for the markets this Thursday.

Read more »

Smiling couple looking at a phone at a bargain opportunity.
Share Gainers

Why Catapult, DroneShield, Infratil, and Qoria shares are charging higher today

These shares are having a good session on Thursday. But why?

Read more »

A group of happy young people watching sport on a laptop celebrate.
Share Gainers

Here are the top 10 ASX 200 shares today

It was an exceptional session for investors today.

Read more »

Excited couple celebrating success while looking at smartphone.
Share Gainers

Why 4DMedical, Brazilian Rare Earths, Clarity, and Tuas shares are racing higher today

These shares are having a better day than most on hump day.

Read more »

Woman with an amazed expression has her hands and arms out with a laptop in front of her.
Share Gainers

Why BHP, EchoIQ, Life360, and Qantas shares are racing higher today

These shares are having a solid session on Tuesday. But why?

Read more »

A neon sign says 'Top Ten'.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors had a rough start to the week.

Read more »

Three people with gold streamers celebrate good news.
Gold

Guess which ASX gold stock is leaping 22% in Monday's sinking market?

Investors are piling into this junior ASX gold stock on Monday. But why?

Read more »

Winning woman smiles and holds big cup while losing woman looks unhappy with small cup.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a rough end to a tough week.

Read more »