Login | Register
Profile | Log out
logo

  • Home
  • News
  • Opinion
  • Other
    • Market Updates
    • Explainers
    • Satire
  • About
  • Contact Us
    • Contact
    • Get Covered
    • Posting Guidelines
  • Subscribe
Submit An Article

Latest Articles

  • Biotron Expands into Anaesthetics with Sedarex Acquisition and $2.5m Raise
    Biotron Expands into Anaesthetics with Sedarex Acquisition and $2.5m Raise
    • News

  • DroneShield Boosts Defence Capability with $13 Million Adelaide R&D Investment
    DroneShield Boosts Defence Capability with $13 Million Adelaide R&D Investment
    • News

  • Stakk Secures T-Mobile Contract to Power Super App Expansion
    Stakk Secures T-Mobile Contract to Power Super App Expansion
    • News

  • Medibank Backs Emyria with Landmark Depression Care Deal
    Medibank Backs Emyria with Landmark Depression Care Deal
    • News

  • NoviqTech Launches Quantum Intelligence Products, Opening Path to Enterprise-Grade Quantum AI
    NoviqTech Launches Quantum Intelligence Products, Opening Path to Enterprise-Grade Quantum AI
    • News

  • BRE Wins Final Permit to Advance Rare Earth Pilot Plant in Brazil
    BRE Wins Final Permit to Advance Rare Earth Pilot Plant in Brazil
    • News

  • Harris Technology eyes profitability as refurbished tech sales surge
    Harris Technology eyes profitability as refurbished tech sales surge
    • News

  • QIC Fund Backs Ark Mines with $4.5m to Accelerate Sandy Mitchell Development
    • News

  • Swift Secures $2.4m Chevron Contract to Extend Entertainment and Support Services
    Swift Secures $2.4m Chevron Contract to Extend Entertainment and Support Services
    • News

  • FBR’s tech could help reduce housing construction-related cost pressures
    FBR’s tech could help reduce housing construction-related cost pressures
    • News

Rewardle foregoes fees in preference of equity stake in BNPL SplitPay

  • In News
  • October 8, 2021
  • Alfred Chan
Rewardle foregoes fees in preference of equity stake in BNPL SplitPay

Give a man a fish, he eats for a day. Teach a man to fish he eats for a lifetime. 

This is the mantra being undertaken by marketing tech company Rewardle (ASX: RXH) which is passing on up to $60k worth of fees for a 1% equity stake in buy-now-pay-later operator SplitPay. 

At that ratio, it implies a valuation of $6 million for the UK-based BNPL operator, which Rewardle provides with marketing services in the UK and European markets. The fees, up to $60k on a cash-to-equity agreement, cover Rewardle’s services for 3 months but may be extended by mutual agreement. 

“Through our work with SplitPay over recent months we’ve identified a number of high growth opportunities where we can leverage our experience, capabilities and IP to help them innovate, differentiate and grow,” said Rewardle Founder and Executive Chairman, Ruwan Weerasooriya.

“For example, we believe that buy now, pay later can follow in the steps of traditional credit cards to power a substantial points and rewards opportunity.

“Converting of our cash fees into SplitPay shares gives us direct exposure to the Buy Now, Pay Later sector, the UK market and upside generated from our services work. It also elevates the nature of our relationship from service provider to shareholder and creates a stronger basis for establishing a deeper strategic relationship.” 

SplitPay is a privately held company founded in 2018 focusing on the immature BNPL market in Europe where existing operators AfterPay (ASX: APT), Zip (ASX: Z1P) and LayBuy (ASX: LBY) are still in the market entry phase. Subsequently, many of SplitPay merchant customers offer multiple BNPL payment options including those aforementioned as a low-cost means to cover the market of retail customers. 

To date, SplitPay has raised more than $2 million from investors and previously actioned a similar services-for-equity deal with digital payments company Novatti Group (ASX: NOV) which is a major shareholder. 

As an unlisted company however, SplitPay does not disclose its merchant numbers or total transaction values. 

This services-for-equity deal with SplitPay follows a similar strategy by Rewardle which has secured equity stakes in Beanhunter and Pepper Leaf via options agreements and software licensing with Cardiac Rhythm Diagnostics. These are all underpinned by marketing services provided by Rewardle which connect over 3 million members with thousands of local businesses. 

Despite the relatively small value of the cash-to-equity stake, RXH shares responded surprisingly well to reach a high of $0.035 in morning trade which represents an 169% increase on their previous 0.013 close.

  • About
  • Latest Posts
Alfred Chan
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
Latest posts by Alfred Chan (see all)
  • Harris Technology to expand refurbished tech division amid rising demand from cost-conscious Australians - April 30, 2025
  • Harris Technology secures major investment from Taiwan’s FSP Technology at 100% premium - March 10, 2025
  • ARC Funds acquires 30% of auzbiz Capital as latest direct-to-investor marketing venture - October 8, 2024
  •  
  •  
  •  
  •  
  • News

Leave a Comment

You must be logged in to post a comment.

  • About
  • Latest Posts
Alfred Chan
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
Latest posts by Alfred Chan (see all)
  • Harris Technology to expand refurbished tech division amid rising demand from cost-conscious Australians - April 30, 2025
  • Harris Technology secures major investment from Taiwan’s FSP Technology at 100% premium - March 10, 2025
  • ARC Funds acquires 30% of auzbiz Capital as latest direct-to-investor marketing venture - October 8, 2024

Login or register for free to access unlimited reading

Register Now!
  • About
  • Latest Posts
Alfred Chan
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
Latest posts by Alfred Chan (see all)
  • Harris Technology to expand refurbished tech division amid rising demand from cost-conscious Australians - April 30, 2025
  • Harris Technology secures major investment from Taiwan’s FSP Technology at 100% premium - March 10, 2025
  • ARC Funds acquires 30% of auzbiz Capital as latest direct-to-investor marketing venture - October 8, 2024
  • News

  • Opinion

  • Satire

  • About

  • Contact Us

  • Subscribe

The content published on this website is solely for general information purposes and is not to be construed as financial advice. Should you seek financial advice you should consult with an appropriately qualified person. Opinions expressed on this site are subject to change without notice and The Sentiment who produced this content is under no obligation to keep the information current. The Sentiment, affiliated companies & associates may have a conflict of interest with companies discussed on the website due to commercial arrangements, for example they may be shareholders in the company, be engaged by them to assist in investor communications or receive commission/brokerage for funds raised.

Copyright © 2020 The Sentiment. All rights reserved.
Subscribe

Enter your email address below to subscribe to The Sentiment’s weekly newsletter, highlighting the top news, research, opinion and satire articles shaping ASX investor sentiment.

The Sentiment respects your privacy and will not spam you. View our privacy policy here.