Buy-now-pay-later (BNPL) service provider Splitit Payments (ASX: SPT) has secured a new partnership with US eCommerce provider Ally Commerce which has already commenced offering the BNPL service for its online enterprise merchants.
Differing from the individual brand approach employed by ASX darling Afterpay (ASX: APT), Splitit instead has been sewing up a series of strategic partnerships with existing sales/software-as-a-service solution companies (e.g. Kogan).
“Ally Commerce is a key addition to our strategic partnerships and will accelerate the growth of our merchant customers in North America,” said Splitit CEO and Co-Founder, Gil Don.
“Our unique solution enables smarter, more responsible buying with existing credit and the flexibility that consumers crave, in turn helping to increase sales for eCommerce retailers.”
Ally Commerce is an Atlanta-based eCommerce platform which enables brand manufacturers to sell their products direct to consumers, vertically integrating supply chain logistics with existing infrastructure. Amongst Ally Commerce’s investors is global logistics company UPS.
The partnership has already seen their first merchant adopt Splitit’s interest and fee free monthly installment solution with Phillips Respironics implementing it for the Phillips business arm which last year delivered more than $2.9 billion in respiratory product sales.
The partnership is the third eCommerce partner Splitit has announced over the past month with Ally Commerce joining South-East Asia payment provider GHL ePayments and music software provider Ableton. Prior to those, Splitit secured a partnership with major Australian eCommerce retailer Kogan.com (ASX: KGN).
In their latest quarterly report on 30 June, 2019, Splitit reported revenue of $575,100 from their merchant fees and total customers of 197,000 using the service.
Since listing on the ASX in January 2019, the Company is yet to report a cashflow positive quarter and is currently financing their activities from the $30.3 million raised via an institutional Placement in May 2019 and $300,000 raised via a Share Purchase Plan, both at an issue price of $0.80c per share.