The broader market is struggling today, but not this ASX BNPL share.

During the lunch hour on Friday, the All Ordinaries Index (ASX: XAO) has recovered its morning losses and is trading just about where it ended yesterday.

And this ASX buy now, pay later (BNPL) stock is doing more than its fair share of the heavy lifting, rocketing 13% after announcing a collaboration with Visa Inc (NYSE: V).

Any guesses?

If you said Splitit Payments Ltd (ASX: SPT) go to the front of the class.

Splitit shares closed yesterday trading for 11.5 cents per share. Shares are currently swapping hands for 13 cents apiece, putting the stock up 13% at the time of writing.

Here’s what the ASX BNPL share reported this morning.

Splitit share price soars on Visa collaboration

Unlike many pay by instalment providers, Splitit allows its customers to make payments over time with their eligible credit cards.

Today, investors are bidding up the ASX BNPL share after the company reported it had signed a new two-year partnership agreement with Visa.

The agreement will see the two firms trial an enhanced instalment solution they’ve been collaborating on. This is intended to optimise consumer experience for Visa Instalments embedded in the Splitit solution.

According to the release, Visa Instalments will be integrated within Splitit’s existing API to provide a “fully embedded and universal consumer experience”. The companies expect to launch the pilot program in the second half of 2023.

Splitit CEO, Nandan Sheth said the new instalment solution will enable “acquirers and merchants to access the powerful benefits of Visa Instalments coupled with Splitit’s universal credit card acceptance in a single API integration and solution”.

Sheth added:

By providing consumers with an optimised, simplified instalment experience, merchants can enjoy improved sales conversion and increased order size. We look forward to working closely with the team at Visa to launch the solution.

The ASX BNPL share noted that future revenue from the agreement with Visa is unknown “due to the variable nature of revenues which are dependent on the value of customer purchases using Splitit’s services”.

Splitit did say that it expects the partnership “may have a material impact” on its brand and business development prospects.

How has this ASX BNPL share been performing?

Despite today’s big lift, the Splitit share price remains down 50% over the past 12 months.

The ASX BNPL share has dropped 24% so far in 2023.

The post Guess which ASX BNPL share just rocketed 13% amid a deal with Visa appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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