Splitit hooks up with Quickfee as BNPL powerplays start
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Splitit, which offers a pay instalment solution for credit card users, said its technology will be integrated into Quickfee’s platform — a payments portal aimed at professional services (legal and accounting) firms that derives most of its revenue from US clients.
Shares in SPT edged higher at the opening bell, QFE shares were unchanged in morning trade:
Clients both large and small
Quickfee’s core service offering aims to smooth out cashflow for professional services firms by taking on bills upfront and offering providing an extended payment plan for those firms’ clients.
The company has a client base of more than 400 legal and accounting firms in the US, and processed over $300m in transactions for the 2020 financial year.
Most of those clients are larger firms, with established levels of revenue that fall within Quickfee’s existing risk protocols — thus removing the need for additional credit checks.
However, running a structure that only caters to larger firms restricts QFE’s capacity to expand its addressable market for smaller legal and accounting practices, of which there are more than 650,000 in the US market.
“Through this new product offering using Splitit technology, QuickFee sees a significant opportunity to expand its customer base to include smaller firms that typically fall outside its credit risk framework,” SPT said.
Quickfee CEO Bruce Coombes said he was optimistic the deal will allow the company to more rapidly expand its service to smaller clients, by integrating the compliance features SPT has already developed.
“The Splitit pre-authorisation technology means there is very low credit risk to QuickFee and the professional services firm,” Coombes said.
Spliit added that it is not yet able to determine the “economic materiality of the partnership”, given that future revenues will be contingent on new client growth.