Here's why the Propell (ASX:PHL) share price jumped 76% today

Propell's partnership with Zip to offer buy now, pay later services has sent its share price skywards.

| More on:
Business meeting to discuss buy now pay later platform

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

The Propell Holdings Ltd (ASX: PHL) share price is soaring after the company announced its first foray into the buy now, pay later (BNPL) sector.

At the time of writing, the Propell share price is 42.86% higher than its previous close at 15 cents.

However, that's lower than its intraday high of 19 cents, which was 76% up.

Propell is a fintech company with a platform that provides tailored finance products to help small and medium-sized enterprises (SME) manage their cash flow.

Let's take a look at today's news from Propell.

Propell's new BNPL solution

Propell announced today that it has partnered with Zip Co Ltd (ASX: Z1P) to provide its first BNPL product.

The product will be available to those using Propell's digital cloud-based platform. It will see SMEs able to offer a BNPL payment option to those purchasing their products and services.  

Aside from stating the split payments will not incur interest, Propell hasn't released any details on the exact workings of its BNPL solution.

According to Propell, the option to offer BNPL will provide its customers with increased payment flexibility.  It also believes the new BNPL option will help SME retain and attract their own customers.

Additionally, the company expects the BNPL service will help to attract new customers to its platform.

Commentary from management

Propell's CEO, Michael Davidson commented on the company's new BNPL payment option:

I am delighted to be announcing our first BNPL product in partnership with Zip which we anticipate will attract new customers to the platform and underpin improved margins in our transactions business. A key focus at Propell, is to help our customers to better manage their finances and in particular their cashflow, and the Zip BNPL product will immediately enable these improvements with their up-front payments solution.

Propell share price snapshot

Today's gains haven't been enough to boost the Propell share price into the green since its initial public offering (IPO).

Currently, the Propell share price has fallen 34.78% from its IPO price of 23 cents in April 2021.

The company has a market capitalisation of around $12.22 million, with approximately 81.5 million shares outstanding.

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. owns shares of and has recommended ZIPCOLTD FPO. 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.

More on Technology Shares

group of traders cheering at stock market
Technology Shares

Codan shares near an all time high. Can they go higher?

Is there more room for growth for this ASX 200 company? 

Read more »

Kid putting a coin in a piggy bank.
Technology Shares

Why I think this ASX small-cap stock is a bargain at $4.41

This tech business has a lot going for it.

Read more »

The last piece of the jigsaw being fitted, indicating good news for a share price on merger or acquisition
Mergers & Acquisitions

WiseTech share price storms higher on $3.25b blockbuster acquisition

What is the company spending billions on? Let's find out.

Read more »

A businessman stacks building blocks.
Technology Shares

6% gain! What's up with Block shares today?

Block shares are up more than 34% since 2 May.

Read more »

Happy work colleagues give each other a fist pump.
Technology Shares

Guess which ASX 200 technology stock has outperformed Nvidia over the past 5 years?

This company has been nothing short of impressive.

Read more »

Buy, hold, and sell ratings written on signs on a wooden pole.
Technology Shares

After surging 13% yesterday, are TechnologyOne shares a buy, hold or sell according to Macquarie?

Valuations matter when investing, and Macquarie feels no different.

Read more »

Two smiling work colleagues discuss an investment or business plan at their office.
Technology Shares

Why Goldman Sachs rates this ASX tech share as a top buy

Let's see why the broker rates this stock highly right now.

Read more »

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
Technology Shares

WiseTech shares have surged 34% since April. Is it too late to buy?

Can WiseTech shares keep charging higher? Here’s what this investing expert expects.

Read more »