The Splitit Ltd (ASX: SPT) share price is slipping today after the company announced a strategic partnership to enter the rapidly growing Middle East market.
At the time of writing, the Splitit share price is down 0.87%, trading at 57 cents.
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New partnership struggles to rally the Splitit share price
Splitit announced that it had signed a new partnership agreement with leading Middle East buy now, pay later (BNPL) solution provider, Tabby Inc.
Tabby operates in the United Arab Emirates (UAE) and Saudi Arabia markets, serving more than 2,000 merchants including high profile retailers such as IKEA, SHEIN, Marks and Spencer, Adidas and Toys R Us.
Tabby offers a classic BNPL financing option, allowing customers to split purchases into four equal installments alongside cashback features.
According to today's statement, Tabby has a "high-profile brand in the region" and integrates directly into merchant checkouts or POS systems.
Splitit said e-commerce in the UAE and Saudi markets in 2020 was estimated to be worth US$7 billion and US$11 billion respectively. And the e-commerce markets in both countries are expected to double over the next 5 years, according to the company.
The partnership will involve Splitit integrating its payments technology as a white-label solution into the Tabby BNPL platform. The integration will see an additional option for customers to pay in instalments using their credit card.
Splitit believes this integration will expand Tabby's product offering to new merchant categories, especially those with higher average order values.
Splitit's integration with Tabby's BNPL platform is expected to be completed by the end of the third quarter 2021.
What did management say?
In response to the expansion, Splitit CEO Brad Paterson commented:
We are delighted to be partnering with Tabby to expand their market-leading offering. We've always seen our solution as complementary to other BNPL providers, which this new exciting partnership with Tabby highlights perfectly.
Our global payments platform is the only solution leveraging credit card payment networks, with the flexibility to scale internationally without the need for major on-the-ground support.
Paterson said that the platform now has the ability to offer white label solutions as a way of entering new regions by "partnering with established players that already have a strong market presence.
Splitit share price down 56% year-to-date
Its been a painful year for Splitit shareholders, with its shares sliding from $1.30 to 57 cents.
The Splitit share price slipped another 8% in June, even when its large cap peers, Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) managed to surge ~26% and 16% respectively.
Splitit isn't alone in its share price headwinds, with other small BNPL players including Openpay Group Ltd (ASX: OPY) and Laybuy Group Holdings Ltd (ASX: LBY) sliding this year as well.
