Why is the Splitit (ASX:SPT) share price wobbling on Wednesday?

Here's all that Splitit released to the market this morning.

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The Splitit Ltd (ASX: SPT) share price is wobbling on the ASX today despite no price-sensitive news having been released by the buy now, pay later (BNPL) company.

However, the company did publish its presentation of the Goldman Sachs Emerging Technology Conference to the ASX today. It also updated market watchers on when they can expect its quarterly investor update.

At the time of writing, the Splitit share price is 39.5 cents, flat with its previous close.

However, earlier today the BNPL provider's stock reached 40 cents, representing a 1.2% gain before tumbling to 39 cents, a 1.27% drop.

Let's take a look at today's non-price sensitive news from Splitit.

A woman sits on her lounge in front of her laptop looking concerned.

Image source: Getty Images

Splitit looks to the future

While it likely hasn't moved the Splitit share price today, the company did publish an optimistic presentation this morning.

Within it, Splitit stated traditional credit cards work for the wealthy, but 52% of consumers, with $3.1 trillion of spending power, would choose to pay credit debt off over time if they could.

Additionally, it claimed 52% of Millennials and 44% of Gen Zs have previously maxed out a credit card, making them wary of credit and turning them towards BNPL services.

That's where the company asserts it comes in. For those who aren't aware of how Splitit differs from other BNPL services, here's a quick refresher.

Splitit works by using a customer's existing credit to reserve a purchase. When a customer chooses to pay for a purchase using Splitit, Splitit holds the balance of the purchase over the customer's credit limit but only charges a portion of the purchase price.

The company makes its money by charging merchants fees.

Thus, Splitit believes it's in a "best of both worlds" position between credit card providers and BNPL services. 

The company also states the United States' credit card market is expected to grow to US$990 billion by 2023.

To get its slice of the pie, Splitit is focusing on markets in the United States and the United Kingdom, and industries with higher average order values.

To help it grow, it will investigate credit card usage patterns as well as branded and white-label opportunities.

It also wants to increase its merchant acceptance and improve onboarding experiences.

Finally, it won't be long until the market gets a squiz into how Splitit has been performing lately.

All eyes will be on the Splitit share price on Friday when the company hosts its quarterly webinar.

Splitit share price snapshot

2021 hasn't been a good year for the Splitit share price.

It is currently 69% lower than it was at the start of the year. It has also fallen 72% since this time last year.

Motley Fool contributor Brooke Cooper 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 Bruce Jackson.

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