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Highlights:
- Splitit expands partnership with Google to bring its instalment services to the Google store in the United States, Australia, and Canada.
- The company said that the material impact on the agreement is unknown.
- Splitit has been removed from S&P/ASX All Technology Index.
The share price of Splitit Payments Ltd (ASX:SPT) marked rise on ASX today (5 December 2022) after the company shared that it has inked an agreement with Google LLC and some of its affiliates to extend its partnership with Google. Credit card-based instalment solution provider said that this expanded agreement would bring Splitit's instalments-as-a-services to the Google store in Australia, Canada, and United States.
Splitit shares were spotted trading 8.33% higher at AU$0.20 per share at 10:31 AM AEDT with a market capitalisation of AU$95.76 million. In the last five trading sessions, the share price has increased by 18.75%, and in a month, it has zoomed up by 46.15%. In the last one year, the share price has dropped by 20.83%, and on a year-to-date basis, it has tumbled by 32.14%.
The expanded partnership with Google
The initial agreement was signed between Splitit and Google in January 2021, under which Splitit's instalment payment solutions were offered in Japan. It got live in April 2021.
The company expects that the instalments solutions will be implemented in early 2023 under the expanded Google agreement. The agreement will remain in full force initially for one year, and it will be renewed automatically for an additional year until it is terminated earlier, or any party gives a notice of non-renewal.
The material impact of the expanded contract on Splitit
The company said that the economic materiality of the agreement is not known because of the "variable nature of revenues". The revenue is dependent upon the customer's uptake of certain products. However, the company expects this partnership to impact its business and brand development prospects.
Other partnerships
Splitit had entered into a partnership agreement with Checkout.com, a payment platform that processes billions in volume every year. Under the agreement, Splitit will be integrated into the Checkouot.com platform, which is expected to be completed by January or February 2023.
As reported, the sales team of Checkppout.com would work with Splitit to drive the sales pipeline. According to the ASX announcement, the aim is to process incremental MSV (merchant sales volume) of AU$0.5 billion to AU$0.65 billion in the coming 2-3 years.
Splitit removed from the All Technology Index
According to ASX filing, Splitit has been removed from the S&P/ASX All Technology Index under December 2022 quarterly rebalance of the S&P/ASX Indices. It will be effective prior to the opening of trade on 19 December 2022.
