The Propell Holdings Ltd (ASX: PHL) share price is soaring after the company announced its first foray into the buy now, pay later (BNPL) sector.
At the time of writing, the Propell share price is 42.86% higher than its previous close at 15 cents.
However, that's lower than its intraday high of 19 cents, which was 76% up.
Propell is a fintech company with a platform that provides tailored finance products to help small and medium-sized enterprises (SME) manage their cash flow.
Let's take a look at today's news from Propell.
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Propell's new BNPL solution
Propell announced today that it has partnered with Zip Co Ltd (ASX: Z1P) to provide its first BNPL product.
The product will be available to those using Propell's digital cloud-based platform. It will see SMEs able to offer a BNPL payment option to those purchasing their products and services.
Aside from stating the split payments will not incur interest, Propell hasn't released any details on the exact workings of its BNPL solution.
According to Propell, the option to offer BNPL will provide its customers with increased payment flexibility. It also believes the new BNPL option will help SME retain and attract their own customers.
Additionally, the company expects the BNPL service will help to attract new customers to its platform.
Commentary from management
Propell's CEO, Michael Davidson commented on the company's new BNPL payment option:
I am delighted to be announcing our first BNPL product in partnership with Zip which we anticipate will attract new customers to the platform and underpin improved margins in our transactions business. A key focus at Propell, is to help our customers to better manage their finances and in particular their cashflow, and the Zip BNPL product will immediately enable these improvements with their up-front payments solution.
Propell share price snapshot
Today's gains haven't been enough to boost the Propell share price into the green since its initial public offering (IPO).
Currently, the Propell share price has fallen 34.78% from its IPO price of 23 cents in April 2021.
The company has a market capitalisation of around $12.22 million, with approximately 81.5 million shares outstanding.
