The white-label service enables customers to pay in instalments using their existing credit on their payment card at checkout. Through the agreement signed with Google and certain of its affiliates, the solution will be extended to the aforementioned markets in addition to Japan, for which Splitit signed an initial agreement to offer Google with its instalment payment solutions in the region in January 2021, with the go live taking place in April 2021.
As per information provided in the company’s press release, the expansion of the initial agreement has been a top priority for Splitit during 2022, with the extension of the contract marking a significant milestone.
Splitit’s instalments solution is expected to be implemented by Google starting with the beginning of 2023, with the economic materiality of the ‘Expanded Google Agreement’ being unknown due to factors of the likes of the revenues’ variable nature, which is dependant of customer uptake or specific products. Despite this, Splitit expects the Google partnership extension to have a material impact on its brand and business development prospects.
The Expanded Google Agreement is set to have an initial term of one year, set to be renewed automatically for successive periods of one year, provided no party has a written notice of non-renewal or unless the agreement is terminated earlier. Furthermore, all the other terms of the Expanded Google Agreement are stated in the press release as being not relevant when it comes to assessing the impact of the transaction on Splitit’s securities’ price or value.
A global payment solution provider, Splitit enables shoppers to make use of their earned credit by breaking up purchases into monthly interest-free instalments using their credit card. The company gives merchants the option of improving conversion rates and increasing average order value by providing customers with the chance of purchasing over time without having to originate new credit. Accepted by over 1,500 ecommerce merchants in more than 30 countries and shoppers in over 100 countries, Splitit is headquartered in the US, has an R&D centre in Israel and offices in the UK and Australia.
In November 2022, Splitit partnered with UK-based payments service provider Checkout.com to support the adoption of its Instalments-as-a-Service platform by the latter’s merchant and marketplaces network, thus delivering an integrated instalment payments solution. Earlier in September 2022, the company made public the completion of an USD 10.5 million private placement with institutional investors targeting the expansion of its Instalments-as-a-Service platform, with the capital announced to be used for the growth of its global enterprise merchants and strategic partners, and the acceleration of its product road map for platform partners.
In August 2022, the company announced two other collaborations where it offered its Instalments-as-a-Service, one with US-based mobile virtual network operator (MVNO) Telispire, and the other one with Canada-based cloud payment platform letus, which integrated the solution to be offered to the property rental market. Earlier in that same month, Splitit signed an agreement with Golden Sachs, to facilitate a reduction in interest rates.
In May 2022, the company launched its Instalment-as-a-Service platform looking to tap into existing consumer credit on payment cards instead of initiating new loans.
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