Consumer finance provider Splitit Payments (ASX: SPT) has partnered up with digital payments business EFT Payments Asia (EFTPay) to offer Splitit’s monthly instalment payment solution to merchants in Hong Kong and Macau.
Splitit, which listed on the ASX at the start of the year following a heavily oversubscribed IPO raising $12 million, said the new partnership would enable the company to expand its presence in the Asia Pacific region.
EFTPay is one of the key partners of Alipay in Hong Kong, providing digital wallet services to merchants including hotel chain Marriott, fashion retailers UGG, Kate Spade and Sunglass Hut and cosmetics brand Estee Lauder.
Some of these services include merchant acquiring, point-of-sale system integration, payment gateway provision, a service counter app and technical support.
Splitit’s contract with EFTPay is for an initial three-year term, unless terminated earlier.
Under the deal, EFTPay is required to meet certain minimum annual targets for merchant transactions processed through Splitit’s system. Fees payable to Splitit will be based on the volume processed.
Split payment platform
Rivalling other Buy Now Pay Later companies like Afterpay (ASX: APT) and Zip Co (ASX: Z1P), Splitit operates an instalment payment platform that enables customers to purchase goods with an existing debit or credit card by splitting the cost into interest and fee-free monthly payments.
Its omnichannel technology offers instant approval with no required credit check, applications or registrations.
According to Splitit, this translates to speedier and more efficient transactions, which benefits merchants by increasing revenue and reducing the likelihood of customers abandoning their shopping cart.
“With online sales at an all-time high, its imperative that merchants optimise their e-commerce business to meet the rising demand from consumers, who we have found to be increasingly receptive to instalment payments over traditional incentives such as discounts and free shipping,” Splitit chief executive officer Gil Don said.
The New York-headquartered company currently serves many of the top 500 internet retailers with its global footprint spanning hundreds of merchants in countries around the world.
Splitit shares were up 12.33% on today’s announcement to $0.82 by afternoon trade.