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.

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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%.

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.

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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.

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