The Splitit Ltd (ASX: SPT) share price has been a positive performer on Wednesday after the US-based buy now, pay later (BNPL) company announced a new partnership.
At the time of writing, the Splitit share price is 3.28% higher to 63 cents.
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Splitit joins the ChargeAfter network
ChargeAfter is a network of global lenders and retailers that offers BNPL and point-of-sale financing to customers, both online and in-store. Its platform delivers the most relevant financing options to its customers at checkout from its pool of lenders based on credit type.
Through this partnership, merchants using ChargeAfter can now offer their customers Splitit services. The announcement highlights that Splitit will be the first financing-free installment payment option on the platform.
Splitit believes this will offer customers a more "flexible way to leverage the hard-earned credit on their existing credit cards to spread payments out over time". The service also means customers can continue to earn rewards points or other benefits from their credit cards.
For merchants, Splitit says that its services help lift key spending metrics of higher-value customers. The update mentions that the company has an average order value of over $1,000, or more than four times most other BNPL alternatives.
Splitit CEO Brad Paterson commented:
Not every consumer is looking to open a new line of credit for the purchase and just want a smarter way to use the credit they have already earned. We serve this type of shopper by giving them the flexibility to use their existing credit cards to spread payments over time without additional fees.
A rough 12 months for the Splitit share price
The Splitit share price has shed more than 70% in value since its September 2020 highs of $1.93.
Most of its underperformance came about during February and March this year, when leading players such as Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) began to sell off.
