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Splitit Announces Step-Change MSV to Complete a Record Year in Q4 FY21 Quarterly Report & Appendix 4C

Splitit Announces Step-Change MSV to Complete a Record Year in Q4 FY21 Quarterly Report & Appendix 4C

- Record Merchant Sales Volume (MSV) of US$130M up 51% Year on Year (YoY) and up 40% Quarter on Quarter (QoQ)

- MSV driven by strong performance in APAC, specifically Japan, record MSV over Black Friday and Cyber Monday and significant contribution from the Christmas shopping period 

- FY21 MSV of US$396M, reflecting a record year and 61% annual MSV growth 

- 12-month Active Merchants increased 60% YoY to 1.25K 

- 12-month Active Shoppers increasing 43% YoY to 330K

- Continued reduction in borrowing costs highlighting quick pathway to transaction margin growth 

- US$29M in available cash, plus US$150M Goldman Sachs credit facility able to support US$650M of annual MSV[1]

- Japan added to Goldman Sachs facility to cater for rapid growth

- US ADR Program launched via OTCQX to enhance Splitit's visibility and trading liquidity with the US investment community and complement its ASX listing

- Seasoned payments industry executive Nandan Sheth appointed as CEO, as announced on 25 January 2022

- Investor webinar held on Monday, 31 January 2022, replay details below

NEW YORK, Feb. 7, 2022 /PRNewswire/ -- Splitit Payments Limited ("Splitit" or the "Company") (ASX:SPT, OTCQX:SPTTY), the Company empowering shoppers to use their credit cards to pay in instalments, is pleased to provide an update on its quarterly activities and cash flows for the three months ending 31 December 2021 (Q4 FY21).

John Harper, Interim CEO of Splitit, commented, "It is pleasing to have delivered such a strong quarter, with a step-change in MSV driven by our success in APAC, specifically Japan, and a record Black Friday and Cyber Monday trading period. In addition to the broadening merchant base, strong progress was also made across other areas of the business, including the roll out of our refined shopper messaging focused on Splitit's consumer friendly BNPL solution and its value to merchants in reducing conversion friction and driving larger purchases.  

"Over the last few months, the tightening of rules by regulators of BNPL providers that issue new debt has continued across multiple geographies. One of Splitit's many points of difference to the multitude of consumer finance BNPL offerings is we don't issue new debt to shoppers, but rather allow them to use the credit they have earned on their existing credit card at the point of sale. Being a technology solution that operates within the highly regulated credit card industry, we have a distinct advantage over issuers of new consumer credit who are under increasing regulatory scrutiny globally. This means we can grow with confidence and continue to put shoppers at the forefront of our mission while enabling them to collect perks like cash back, rewards and points and enhance rather than damage their credit scores.

"As I reflect on my time as Interim CEO, I am proud of what has been achieved in a short period of time. We have strengthened the team internally, narrowed our focus and reduced expenditure, all contributing to these strong results. We have also simplified and refined our messaging to ensure that Splitit's unique benefits to shoppers and merchants are being effectively articulated. New CEO, Nandan Sheth, inherits a differentiated business model that is unique in the BNPL sector, does not have a heavy reliance on consumer marketing, and does not need to price to cover significant consumer defaults and associated costs. This model provides operating leverage at scale and a pathway to sustainable and profitable growth at superior margins. 

"Splitit remains well positioned as one of the most attractive businesses in the sector on account of its technology-based IP, differentiated business model, along with its valuation disparities relative to current MSV multiples and profitable growth potential. 

"The business is an at exciting phase in its journey, and with a seasoned payments industry executive like Nandan at the helm, the possibilities are endless for Splitit. I look forward to working with Nandan to facilitate a smooth handover, and I will remain a close supporter of the company."


As announced on 25 January 2022 the Splitit board of directors has appointed Nandan Sheth as CEO, effective 28 February 2022.  A seasoned payments industry executive, Sheth brings experience spanning leadership roles at major banks, professional service firms and Fortune 1000 companies across North America and Europe. His record of entrepreneurial success includes co-founding, scaling and successfully exiting multiple fintech companies, including Harbor Payments (sold to American Express in 2006) and Acculynk (sold to First Data in 2017). 

Sheth's executive leadership experience in the payments sector spans corporate and business development, alliances, product strategy and development, and operations. Prior to joining Splitit, he served as Fiserv's Head of Global Digital Commerce, as well as Head of Fiserv's Carat, an ecosystem of omnichannel commerce solutions for large multinational companies. Prior to that, Sheth was President and COO of Acculynk, the business he co-founded in 2008 and sold to First Data in 2017. His earlier experience includes serving as VP and GM at American Express and co-founding and scaling Harbor Payments (sold to American Express) and e-Debt. He began his career as a VP and Client Partner at AT&T. Sheth holds an MBA from the Cass Business School and a BSc with Honours from City, University of London.


Splitit delivered another record quarter of MSV processed in Q4 FY21 at US$130M. This reflects 51% YoY growth against Q4 FY20 or, adjusting for the deliberate shift away from debit cards, YoY MSV growth of 60%. MSV was consistently high throughout the quarter, supported by strong sales in APAC, specifically Japan, a record Black Friday and Cyber Monday campaign and busy Christmas trading period. QoQ MSV growth of 40% is nearly double the seasonal upswing reported in Q4 FY20 (22%). 

Annual MSV of US$396M represents YoY growth of 61% against FY20 (US$246M), or 72% YoY if normalised for the impact of debit cards.

Revenue (Non-GAAP) was US$3.4M, reflecting a 28% increase YoY.  MSV growth was higher than revenue growth in Q4 due to a more diversified merchant base and a higher proportion of MSV through our basic model, consistent with the previous quarter.

New merchant acquisition continued steadily during the quarter with a 7% increase in 12 Month Active Merchants, despite the retail industry's seasonal focus on the busy holiday sales period which typically sees slower new merchant growth. Current Active merchants grew 60% YoY growth, with Splitit now supporting 1.25K Active Merchants to offer its highly integrated solution where Shoppers don't need to leave the merchant's website to process their instalment payment. 

Pleasingly, two merchants that launched in Q4 have already moved into the top 10 contributors to quarterly MSV. Rare Carat, a top US diamond marketplace, and Gem Shopping Network, a 24/7 live streaming network selling fine jewellery in the US, each highlight the unique value Splitit brings to high value ticket sizes.  

Splitit's Average Order Value (AOV) remains over US$1K and continues as a valuable differentiator for merchants choosing the solution to drive higher value purchases by shoppers who are typically wealthier individuals with good credit ratings and use Splitit as a budgeting tool. This target shopper demographic is far less vulnerable to recessionary trends compared to other BNPL providers which target a more levered or sub-prime market.

Shoppers also continue to be attracted to Splitit as they are still able to collect all the benefits they would normally receive for credit card transactions such as cash back, rewards and points. 12 Month Active Shoppers reached 330K, reflecting 43% YoY growth. 

Partnerships & Product Innovation

White Labelling Driving Scale

Another unique feature of Splitit's technology is that in addition to its branded solution, it enables a white-labelled offering where merchants retain their brand and the customer experience. This means Splitit does not rely on having a significant brand presence and consumer engagement in all markets, enhancing its pathway to profitability, and providing a low-cost entry point into new markets and verticals by supporting established BNPL providers, helping to deliver scale more quickly. 

White labelling is an attractive option for merchants who wish to retain control of their brand and engagement with shoppers. The Google Store in Japan is an example of an elegant white-label solution which has driven unique benefits for merchant and shoppers alike.

Integration with leading e-commerce platform Wix

During the quarter, Splitit integrated with Wix, a leading cloud-based web development services company helping small and medium sized businesses create websites and mobile sites. Merchants running a Wix eCommerce website can now easily offer Splitit's instalment payments to their shoppers. Splitit now supports six of the leading global e-commerce platforms, which also includes Shopify, Magento, WooCommerce, BigCommerce and Salesforce Commerce Cloud.


Splitit ADR Program launched through OTCQX market

In November 2021, Splitit launched its sponsored Level 1 American Depositary Receipts Program (ADR Program) in the United States. Through the ADR Program, Splitit has direct exposure to the US investment community via OTCQX, providing enhanced visibility and trading liquidity to complement Splitit's ASX listing. Splitit's ADRs trade under the symbol SPTTY and each ADR represents 40 ASX-traded SPT ordinary shares. 

Cash Flow

The Company's closing cash position was US$29M. Cash receipts from customers for the period were US$3.4M2, and operational expenditure was US$6.7M, representing a reduction in operating expenditure on each of the previous four quarters.3

Net cash used in operating activities (cash burn) was US$3.6M for the quarter (exclusive of US$27.7M4 net merchant funding outflows, and US$11k of legacy withholding tax5), representing a reduction in cash burn on each of the previous five quarters.

Net financing activities for the period were an inflow of US$15.6M6, primarily driven by a US$16.3M drawdown on the Goldman Sachs facility with the inclusion of Japan to cater for its rapid growth. This inflow was offset by interest and cost of finance paid of US$1.1M[7], which represents a further 11% improvement on the prior quarter, a 49% improvement on Q2, and a 55% improvement on Q1. This highlights the ongoing margin efficiency being driven as higher cost facilities have been repaid throughout the course of the year. 

Splitit held US$43.5M in net cash, comprised of:

  • US$29M available cash
  • US$81M funded merchant receivables
  • (US$66.5M) debt payable

Combining undrawn loan facilities with closing cash, the Company has a total of US$112.5M of liquidity to fuel future growth. 

Note: Unless specified otherwise, all amounts are in USD and provided on an unaudited basis. Foreign currency amounts have been converted to USD at an average monthly exchange rate throughout the quarter.


Splitit hosted a webinar for investors on Monday, 31 January 2022, at 9:30 a.m. Australian Eastern Daylight Time (AEDT). A replay is available at:


Splitit's Appendix 4C for Q4 FY21 is accessible at or at on the Company's ASX listing page.


Splitit also advises that it has issued 882,191 fully paid ordinary shares ("Shares") on exercise of that same number of unlisted options under the Company's 2013 Employee Share Incentive Plan.  A cleansing statement in respect of the Shares is set out below and an Appendix 2A in respect of the Shares will follow this announcement.

Cleansing Statement 

The Company hereby notifies ASX under section 708A(5)(e) of the Act that:


today, 31 January 2022, the Company completed the issue and allotment of 882,191 fully paid ordinary


the Company issued the shares without disclosure under Part 6D.2 of the Act;


the Company provides this notice under section 708A(5)(e) of the Act;


as a disclosing entity, the Company is subject to regular reporting and disclosure obligations;


as at the date of this notice:


the Company has complied with the provisions of Chapter 2M and section 674 of the Act as they apply to
the Company; 


there is no information that has been excluded from a continuous disclosure notice in accordance with the
ASX Listing Rules and that investors and their professional advisors would reasonably require for the purpose
of making an informed assessment of:

A.     the assets and liabilities, financial position and performance, profits and losses and prospects of the Company; or

B.     the rights and liabilities attaching to the shares.

About Splitit

Splitit is a global payment solution provider that enables shoppers to use the credit they've earned by breaking up purchases into monthly interest-free instalments using their existing credit card. Splitit enables merchants to improve conversion rates and increase average order value by giving customers an easy and fast way to pay for purchases over time without requiring additional approvals. Splitit serves many of Internet Retailer's top 500 merchants and is accepted by more than 3,000 eCommerce merchants in over 30 countries and shoppers in over 100 countries. Headquartered in New York, Splitit has an R&D centre in Israel and offices in London and Australia. The Company is listed on the Australian Securities Exchange (ASX) under ticker code SPT. The Company also trades on the US OTCQX under ticker codes SPTTY (ADRs) and STTTF (ordinary shares).

Key Points 

Consumer friendly for shoppers

As the only BNPL player allowing shoppers to use their pre-existing unused credit card balances at the point of sale, Splitit offers a consumer friendly BNPL solution with no new debt or credit checks, no application, no interest or late fees charged. It also allows shoppers to continue collecting perks like cash back, rewards and points as they would on normal credit card transactions, without any risk of damaging their credit profile. 

Unique benefits for merchants

Splitit is highly integrated (shoppers don't need to leave the merchant's website), easy to Implement and offers longer and flexible loans, reducing shopper friction and driving sales conversion rates. It also offers merchants the option of a funded or non-funded model.


Globally scalable model, boosted by whitelabelling

Splitit is fundamentally a technology business leveraging the existing global credit card payment rails. This means its branded or white label solution can be adopted in new markets without the need for an 'on the ground' presence, delivering strong operating leverage, enhanced scalability and a cost-effective pathway to profitability.


Already subject to existing credit card regulatory framework, and allows merchant surcharging

As a technology solution that operates within the highly regulated credit card industry, Splitit has a distinct advantage over BNPL competitors who are under increasing global regulatory scrutiny due to their consumer financing models. In addition, mounting sectorwide pressure to allow merchant surcharging will not impact Splitit, as merchants are already allowed to surcharge on credit cards. 


Unique IP

Splitit's protected IP secures the pre-authorisation on a consumer's credit card limits consumer defaults, as the transactions are secured by the credit card issuers. This unique business model provides operating leverage at scale and a pathway to future profitability without the same associated risk.  


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

Contact Information
Brian Blank, Splitit 
760 917 3321

Catherine Strong, Citadel Magnus for Splitit

1 Assumes approximate mix of funded/non-funded plans: 75/25 
2 Item 1.1 of Appendix 4C
3 Item 1.2 of Appendix 4C
4 Item 1.8 of Appendix 4C
5 Item 1.6 of Appendix 4C 
6 Item 3.10 of Appendix 4C 
7 Item 3.9 of Appendix 4C

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