Fintech: Splitit signs deal with Kogan.com as buy now, pay later sector remains in the spotlight
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Buy now, pay later (BNPL) fintech platform Splitit (ASX: SPT) has signed a distribution deal with online retailer Kogan.com.
The companies made a dual announcement and said the deal was expected to go live “in the coming days”.
For Splitit, the agreement marks the first time a major Australian retail platform will use its payments technology.
Shares in the company initially rose before edging lower in midday trade. The stock price edged lower in June, after hitting an all-time high of $2 in a period of red-hot trade following its January listing.
Splitit’s latest announcement comes as analysts, investors and market commentators continue to shine a spotlight on the BNPL sector.
Shares in market leader Afterpay (ASX:APT) — which also has a deal with Kogan.com — slumped by 10 per cent on Friday, after payments giant Visa announced it would begin testing its own pay-by-instalments technology.
The fall was enough to warrant a “please explain” from the ASX. Afterpay said this morning it wasn’t aware of any information that would’ve caused the decline. Shares in APT fell sharply at the opening bell today before paring losses.
Splitit — which differs from BNPL competitors in that it’s geared towards credit card transactions and larger purchases — said the Kogan agreement was an important step in the company’s Asia-Pacific growth strategy.
Markets are awaiting SPT’s June quarter trading results, after the company booked $457,000 in customer receipts during Q1.
Small business data platform 9 Spokes (ASX: 9SP) released its annual report on Friday afternoon. The company said its user-base had now climbed to over 100,000, with revenue up 22 per cent to $8.2m.
Shares in 9SP — which collates data into a business performance “dashboard” for its clients — have climbed from 15c to 18c since the release of the report.
Things weren’t so rosy for embattled cryptocurrency company Byte Power Group (ASX: BPG). Its latest monthly 4C filing showed cash receipts from customers amounted to just $3,000 in May, offset by $225,000 of staff and admin costs. As at the end of May, the company had $104,000 left in the bank.
And shares in investment app Raiz Invest (ASX: RAI) fell by four per cent after the company announced it will increase maintenance fees for customers with balances of less than $10,000.