Payments company Splitit (ASX: SPT) is set to expedite its global growth strategy having partnered with Mastercard Inc (NYSE: MA) to develop Buy-Now-Pay-Later (BNPL) options into Mastercard’s technology suite.
Through the partnership, Splitit aims to capitalise on the global BNPL phenomenon while offering payment choices, control and simplicity to consumers and businesses.
“We are very excited to be partnering with Mastercard who share our strong commitment to accelerating the adoption of installment payments globally”, said Splitit CEO, Brad Paterson.
“This is a fantastic way to broaden the distribution of our solution, leveraging Mastercard’s incredible global reach, and build out a range of instalment services.”
Together, the two payments companies will work on developing Mastercard’s payment gateway services to enable a scalable way to offer Splitit’s BNPL installment options.
Initially, the partnership will look to roll out pilot programs across three diverse markets before assessing a global rollout.
“This partnership with Splitit will help to drive higher transaction volumes for businesses and deliver budgeting solutions in the moment consumers are seeking them,” said Zahir Khoja, Mastercard Executive VP of Global Merchant Solutions and Partnerships.
Highlighting one of the reasons BNPL payment options have surged in popularity, Khoja commented, “Consumers walk away with payment options and businesses get paid in full, building consumer loyalty.”
Due to the contingent nature of how the joint venture will collaborate, what products will be developed and how they will be integrated by Mastercard, Splitit could not determine the material impact of the partnership at this stage.
Speculators were quick to action this morning however, with SPT shares reaching $1.025 in morning trade, a rise of 55% on their previous $0.66 close.
Emerald Financial recently released Analyst commentary on the digital payments and cash alternatives sector which can be accessed here.
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