- Splitit Payments (SPT) achieves US$101 million (A$141.8 million) in merchant sales volume for the March quarter, marking a 23 per cent year-on-year increase
- The payment solutions provider also generated US$2.6 million in revenue and a 43 per cent increase in 12-month active merchants to 1300
- Splitit also inked a deal with Google for Japanese customers to use instalment plans to make purchases and is in discussions regarding Google’s US customers
- Looking ahead the buy now, pay later (BNPL) company’s focus is on driving the next generation of BNPL for merchants, issuers and networks
- SPT shares are up 11.9 per cent to trade at 23.5 cents
Splitit Payments (SPT) reported a 23 per cent year-on-year (YoY) increase in merchant sales volume (MSV) of US$101 million (A$141.8 million) for the March 2022 quarter.
Despite the positive YoY uplift, Q1 MSV represented a 22 per cent decrease on the prior quarter which saw a ‘record’ performance of US$130 million MSV.
In terms of revenue, the buy now, pay later (BNPL) company posted a US$2.6 million result for the March quarter, reflecting a six per cent increase YoY.
Splitit said MSV growth was higher than revenue growth due to a greater contribution within the funded portfolio from shorter dated loans which typically have a lower top line revenue and lower funding costs.
Another highlight for the first three months of the 2022 calendar year was the 43 per cent YoY increase in 12-month active merchants to 1300.
According to Splitit, its solution is ‘attractive’ to merchants as it’s the most highly integrated instalment solution, offering the fastest shopper checkout of all BNPL providers.
Despite a growth in active merchants, 12-month active shoppers declined slightly during the quarter at 327,000 shoppers. SPT said this reflects the last remaining debit shoppers being removed from the 12-month lookback period.
In terms of operations Splitit onboarded a new CEO, Nandan Sheth, to lead its refreshed growth strategy.
The company is focused on powering the next generation of BNPL for the existing payments ecosystem through a single network application programming interface (API).
To do this, it will have an enhanced focus on distribution partners to drive growth, offer white-label, instalments as a service solution for partners and enterprise merchants, and unlock BNPL for issuers at the merchant point of sale.
The company also penned an agreement with Google to empower Japanese customers to use instalment plans to make purchases from the Google Store in Japan. Splitit is now in discussion with Google USA to expand its partnership beyond Japan and include Google’s US customers.
By the end of March, Splitit had US$25M in available cash as well as a US$150M Goldman Sachs credit facility.
SPT shares were up 11.9 per cent to trade at 23.5 cents at 12:49 pm AEST.