- Rewardle (RXH) shares have soared after the company executed a binding terms sheet with buy now, pay later (BNPL) platform SplitPay
- The company will provide strategic and technical consulting services to help accelerate growth and development of SplitPay’s business
- Rewardle will receive an average of $10,000 a month in fees, with a minimum retainer of $5000 a month
- The companies have agreed to an initial term of two years but hope to explore long-term strategic partnership opportunities
- Rewardle is up 291.67 per cent and trading at 4.7 cents per share
Rewardle (RXH) shares have soared after the company executed a binding terms sheet with buy now, pay later (BNPL) platform SplitPay.
While SplitPay Group is based in Australia, the company aims to rapidly scale up its business in the UK and European BNPL markets.
The term sheet is for the provision of professional services under a growth services agreement. Rewardle will provide strategic, technical and management consulting services to assist in accelerating the growth and development of SplitPay’s BNPL business.
SplitPay will pay Rewardle an average of $10,000 a month in fees for services provided, with a minimum retainer of $5000 a month. The overall fee for services will be based on the company’s use of time and materials.
This agreement falls within Rewardle’s strategy of generating third-party services revenue, which supports maintenance of the company’s team, intellectual property and operations.
In May and June of 2021, Rewardle will also receive approximately $10,000 a month each from other clients, Pepper Leaf and Beanhunter. The company expects that the consulting services it provides to SplitPay will contribute approximately 20 per cent to its third-party services revenue target of $50,000 a month.
Rewardle and SplitPay have agreed to an initial agreement term of two years. However, both companies hope to explore long-term strategic opportunities through their partnership.
Rewardle’s Executive Chairman, Ruwan Weerasooriya, said the company is looking forward to sharing its insight and helping accelerate SplitPay’s growth.
“While our consulting work with SplitPay will contribute towards our monthly professional services target, we’re most excited about collaborating with them on broader opportunities,” he said.
“We’ve given a lot of thought to the role that points and rewards could play in the evolution of the buy now, pay later sector and we’re looking forward to exploring this with SplitPay,” he added.
Rewardle is up 291.67 per cent, trading at 4.7 cents per share at 11:36 am AEST.