Splitit strikes deal for instalment plan payments in Japan Google Store
Shares in BNPL platform Splitit surged on news of a deal with Google in Japan to allow customers to use instalment plans to buy from the Google Store.
Shares in “buy now, pay later” platform Splitit surged on Monday after the company announced it had partnered with Google in Japan to allow customers to use instalment plans to make purchases from the Google Store.
Splitit said Japanese customers who had purchased Google’s new 5G phone, the Pixel 5, or Google Nest devices would be able to split their store payments into equal monthly instalments.
The payment group’s shares jumped 8.9 per cent on the news, to close at $1.41.
Splitit differs from traditional “buy now, pay later” firms by allowing customers to pay for items in instalments using traditional credit cards.
Chief executive Brad Peterson said this made Splitit the only “buy now, pay later” firm to serve Japan’s credit card industry.
“Splitit is the only instalment provider to service the huge credit card industry, with 68 per cent of adults in Japan holding a credit card, the highest in Asia,” Mr Peterson said.
“This partnership marks the next phase in our expansion into Asia as we continue to grow our footprint with our global platform.
“This is one of the strongest case studies yet of our unique offering.
“We are working with Google in its effort to provide the best possible experience for its customers, and the seamless integration of Splitit into Google Store Japan means they never have to leave the platform.”
Splitit said it could not provide information on the value of the deal as it was contingent on revenues that varied based on customer take-up of products.
The company, which has a market capitalisation of $631m, recorded gross revenue of $US2.4m ($3.12m) in the three month to September 30, 2020.
It deals with a stable of 629 active merchants and 186 active shoppers.
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