The Splitit Ltd (ASX: SPT) share price closed 3.81% higher on Wednesday at $0.54 and has opened morning trade higher again, sitting at $0.56 at the time of writing.
At points in Wednesday trade, the Splitit share price traded as high $0.58, up almost 5%. This rise was most likely due to a financing announcement made to the ASX yesterday morning.
The global monthly instalment payments solution business announced that it had signed an agreement with Shaked Partners Fund, aimed at continuing its ability to deliver growth to its funded merchant business model, via an interim finance facility.
The new facility is up to $11.6 million, which could be a contributing factor to the Splitit share price increase.
Splitit CEO Gil Dan commented: "This new finance facility is flexible and global. It can be utilised by Splitit to help us serve merchants all over the world."
ASX fintech shares on the move
We have seen a real shift in the financial technology industry. It's now moving away from traditional banking tropes and into new financing solutions, where it's back into the hands of the consumers.
With an estimated 400 fintech companies based in Australia alone, it's truly an exciting time for the industry and investors alike.
Pit this against the shift in consumer feelings towards banks, the rise in technology and general investment appetite – and we are seeing an opportunity for fintech shares to emerge.
Following the 2018 Royal Banking Commission, Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB) all suffered losses to their business.
Buy now and pay later fintech stocks like Splitit could be the key to the banks' survival.
Should you buy Splitit shares?
The economic climate is proving promising for fintech stocks and investors can expect that this new financing facility will help nurture Splitit's growth plans.
But is that enough for Splitit to spill over into an investment-worthy share?
Well, you should keep in mind that while there's still a lot of growth to be had for fintech companies, there's also risk, which makes Splitit shares prone to future share price shifts.
As with any emerging industry, there might still be a little time yet to figure an appropriate buy price.
