The Flexiroam (ASX: FRX) share price rockets 35% after new announcement

Flexiroam Ltd (ASX: FRX) share price was up as much as 35% today. The rise coming after the mobile network operator announced a partnership allowing it to offer Buy-Now-Pay-Later (BNPL) technology.

| More on:
surging asx share price represented by piggy bank with rocket attached to it

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

The Flexiroam Ltd (ASX: FRX) share price was up as much as 35% today. The rise coming after the mobile network operator announced a partnership allowing it to offer Buy-Now-Pay-Later (BNPL) technology.

At the time of writing, the share price did come down from today's high of 6.9 cents. It is currently sitting at 5.8 cents per share — still up 13.73% on yesterday's close.

What did Flexiroam announce?

In a statement to the ASX, Flexiroam announced its partnership with Singapore/Malaysian BNPL provider, Split. Flexiroam stated that Split will be offered as a BNPL option via its Flexiroam Wallet product. Customers will be able to make purchases over three interest-free instalments.

However, the offer is only for Malaysian and Singaporean Flexiroam mobile users. The product will be free to download into Flexiroam Wallet. Split will also charge a transaction fee on sales generated.

Words from the executives

Commenting on today's announcement, Flexiroam managing director, Jef Ong said:

The signing of our agreement with Split is an important development as the BNPL space is rapidly gaining traction in South East Asia…

He added:

[We] see the potential to offer further BNPL options to users outside of Malaysia and Singapore, in the future. Out of the 670 million people in South East Asia, only 27% have bank accounts, which means that there are hundreds of millions of unbanked and underbanked individuals who would require support using non-bank payment methods to purchase our products.

Split CEO, Dylan Tan, also gave his thoughts on today's announcement, stating:

We are delighted to be offering Split as a payment option on the Flexiroam Wallet and look forward to giving our userbase a budget-friendly way to buy mobile data.

The huge growth of BNPL shares on the ASX

Flexiroam's latest venture is another addition to the growing list of companies offering BNPL services. Afterpay Ltd (ASX: APT) share price has gone from $2.95 on its initial public offering (IPO) to nearly $120 at the time of writing.  Zip Co Ltd (ASX: Z1P) similarly, has seen remarkable growth. The share price in the company has gone 39 cents just 5 years ago to $10.45 as of writing.

Afterpay has a market capitalisation of $34.1 billion, while Zip's is $5.8 billion.

Flexiroam share price snapshot

Today's phenomenal rise is not out of the ordinary for Flexiroam. This time last year, the Flexiroam share price was sitting at 2 cents — a 155% increase. As recently as 8 February this year, shares in the telecom company were trading for as high as 9 cents each.

Flexiroam's market capitalisation is $29 million.

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Six smiling office colleagues stand in a row and look at the camera.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why ANZ, Clarity, IGO, and Pilbara Minerals shares are dropping today

These shares are ending the week in the red. But why?

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Betr, Centuria Capital, GR Engineering, and Mach7 shares are pushing higher

These shares are having a good finish to the week. But why?

Read more »

woman holding 'hiring' sign in shop
Broker Notes

How much upside does Macquarie tip for Seek shares?

The broker recently reviewed Australian job ad volumes for May.

Read more »

Ecstatic woman looking at her phone outside with her fist pumped.
Broker Notes

Macquarie tips 50% return for this cheap ASX All Ords stock

Let's see which stock the broker is feeling bullish about this week.

Read more »

A woman sits at her home computer with baby on her lap, and the winning ticket in her hand.
Consumer Staples & Discretionary Shares

How much upside does Macquarie expect for Lottery Corporation shares?

This ASX 200 stock has proven resilient through various economic conditions.

Read more »

ASX 200 retail shares a woman smiles over the top of multiple shopping bags she is holding in both hands up near her face.
Opinions

Up 90% in a year, is it too late to buy Zip shares?

Should investors buy this stock now or wait until later?

Read more »

Broker looking at the share price on her laptop with green and red points in the background.
Share Market News

5 things to watch on the ASX 200 on Friday

It looks to be a poor finish to the week for Aussie investors.

Read more »