Splitit, Alipay form partnership to power 'Pay After Delivery' installments on AliExpress

Rhea-AI Summary

Splitit Payments Limited (ASX:SPT, OTCQX:SPTTY) has partnered with Alipay to introduce a 'Pay After Delivery' option for shopping on AliExpress. This service, leveraging Splitit's Instalments-as-a-Service platform and Checkout.com's payment capabilities, allows consumers in Germany, Spain, and France to pay for goods after delivery using their existing credit cards. The partnership aims to enhance the shopping experience and is expected to significantly impact Splitit's brand and business development. Further expansions into other international markets are anticipated, although the economic materiality of the agreement remains unknown due to variable revenue factors.

Positive

• Partnership with Alipay enhances Splitit's service on the AliExpress platform.
• Initial service launch in Germany, Spain, and France with future expansion planned.
• The 'Pay After Delivery' option offers a competitive edge in the eCommerce market.

Negative

• Economic impact of the partnership is uncertain, depending on consumer purchase behavior.

• Splitit's flexible technology platform, coupled with Checkout.com's payment-acquiring capabilities, enables AliExpress shoppers to pay after delivery with their existing credit card.
• Splitit's pay-on-delivery service allows merchants to give their consumers the benefit of paying for purchases after the goods are delivered.
• The service will initially launch in Germany, Spain and France, with plans to expand into other international markets.

ATLANTA, Jan. 15, 2023 /PRNewswire/ -- Splitit Payments Limited ("Splitit" or the "Company") (ASX:SPT, OTCQX:SPTTY), the only white-label service allowing customers to pay by installments using their existing credit on their payment card at checkout, announces that Splitit and Alipay have formed a partnership to power the 'Pay After Delivery' option for shoppers on AliExpress, a global eCommerce marketplace owned by the Alibaba Group. The service will initially launch in Germany, France and Spain, with plans to expand into other international markets.

Splitit, Alipay form partnership to power 'Pay After Delivery' installments on AliExpress

Splitit's flexible technology platform, coupled with Checkout.com's payment-acquiring capabilities, enables AliExpress shoppers to pay after delivery with their existing credit card. Pay on delivery is Splitit's new installment service that allows consumers to pay for goods after delivery. The agreement leverages Splitit's Instalments-as-a-Service platform to create a custom-branded experience embedded in the AliExpress checkout flow. Alipay is AliExpress' global payment solution partner.

"Our work with Alipay is a testament to the flexibility of Splitit's platform and the strength of our new partnership with Checkout.com. Together we are providing a valuable resource for sellers and shoppers by powering payment after delivery," says Splitit CEO Nandan Sheth. "We are thrilled to collaborate with two exemplary companies like Alipay and Checkout.com. I look forward to building on this initial launch by expanding into other markets in the future."

"Splitit was able to provide a solution that addressed our needs to deliver a modern pay-after-delivery option for AliExpress consumers. Splitit's white-label approach allows us to easily customize and integrate the service into our platform while delivering a positive experience for sellers and shoppers," says AliExpress European Commercial Director Topp Gary Paul.

The Merchant Funding Agreement (the "Agreement") shall become effective from today and shall remain in full force for an indefinite period until either party gives written notice of non-renewal at least thirty (30) days prior written notice or unless the Agreement is earlier terminated for breach of contract or financial instability. All other terms of the Agreement are not relevant to assessing the impact of the transaction on the price or value of Splitit's securities.

The economic materiality of the Agreement with Alipay is unknown due to the variable nature of revenues which are dependent on the value of customer purchases using Splitit's services. However, Splitit expects that extending its partnership with Alipay may have a material impact on Splitit's brand and business development prospects.

About AliExpress

Launched in 2010, AliExpress (www.aliexpress.com) is a global marketplace targeting consumers from around the world and enabling them to buy directly from manufacturers and distributors in China and around the world. In addition to the global English-language version, the AliExpress platform is also available in 17 other languages. AliExpress is a business of Alibaba Group.

About Splitit

Splitit powers the next generation of Buy Now, Pay Later (BNPL) through its merchant-branded Instalments-as-a-Service platform. Splitit is solving the challenges businesses face with legacy BNPL while unlocking BNPL at the point of sale for card networks, issuers and acquirers all through a single network API. Splitit's Instalments-as-a-Service platform mitigates issues with legacy BNPL like the declining conversion funnel, clutter at the checkout and a lack of control of the merchant's customer experience while putting the power back in the hands of merchants to nurture and retain customers, drive conversion and increase average order value. Splitit's white-label BNPL is the easiest installment option for merchants to adopt, integrate and operate while delivering an uncluttered, simplified experience embedded into their existing purchase flow. Headquartered in Atlanta, Splitit has an R&D center in Israel and offices in London and Australia. Splitit is listed on the Australian Securities Exchange (ASX) under ticker code SPT and also trades on the US OTCQX under ticker SPTTY (ADRs) and STTTF (ordinary shares).

The announcement has been approved and authorized to be given to ASX by Dawn Robertson, Chairman of the Board of Splitit.

Contact Information

Australian Media & Investors Catherine Strong Citadel-MAGNUS cstrong@citadelmagnus.com +61 2 8234 0111

US Media Brian Blank Splitit brian.blank@splitit.com +1 760 917 3321

AliExpress Cheryl Zhang  AliExpress cheryl.zxm@alibaba-inc.com

Disclaimer

Nothing contained in this announcement constitutes investment, legal, tax or other advice. You should seek appropriate advice before making investment decisions.

This announcement contains "forward-looking statements." These can be identified by words such as "may," "should," "anticipate," "believe," "intend," "estimate," and "expect." Statements which are not based on historical or current facts may be forward-looking statements. Forward-looking statements are based on:

• assumptions regarding the Company's financial position, business strategies, plans and objectives of management for future operations and development and the environment in which the Company will operate; and
• current views, expectations and beliefs as at the date they are expressed and which are subject to various risks and uncertainties.

Actual results, performance or achievements of the Company could be materially different from those expressed in or implied by these forward-looking statements. The forward-looking statements contained within the presentations are not guarantees or assurances of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company, which may cause the actual results, performance or achievements of the Company to differ materially from those expressed or implied by forward-looking statements. For example, the factors that are likely to affect the results of the Company include general economic conditions in Australia and globally; exchange rates; competition in the markets in which the Company does and will operate; weather and climate conditions; and the inherent regulatory risks in the businesses of the Company. The forward-looking statements contained in this announcement should not be taken as implying that the assumptions on which the projections have been prepared are correct or exhaustive. The Company disclaims any responsibility for the accuracy or completeness of any forward-looking statement. The Company disclaims any responsibility to update or revise any forward-looking statements to reflect any change in the Company's financial condition, status or affairs or any change in the events, conditions or circumstances on which a statement is based, except as required by law. The projections or forecasts included in this presentation have not been audited, examined, or otherwise reviewed by the Company's independent auditors.

You must not place undue reliance on these forward-looking statements.

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SOURCE Splitit USA, Inc.

FAQ

What is the significance of Splitit's partnership with Alipay for stock symbol SPTTY?

Splitit's partnership with Alipay enables a 'Pay After Delivery' option for AliExpress shoppers, expected to enhance brand recognition and market presence.

In which countries is Splitit launching its pay-after-delivery service?

The pay-after-delivery service is being launched in Germany, Spain, and France initially.

How might the Alipay partnership affect Splitit’s financials?

The partnership’s economic impact is currently unknown, as it depends on the purchasing behavior of consumers utilizing the service.

What technology does Splitit use for its new service available on AliExpress?

Splitit's new service utilizes its Instalments-as-a-Service platform integrated with Checkout.com's payment-acquiring capabilities.

When was the announcement of the partnership between Splitit and Alipay made?

The announcement was made on January 15, 2023.