Last week Splitit, a card-based BNPL (Buy Now Pay Later) service, which this year became the 66th fastest-growing company in North America, started trading for American Depositary Receipts (ADRs) on the OTC Markets Group.
The company became known because of its unusual workflow. Splitit doesn’t have any application process or credit check. Instead, they create automatic installment payments, so the customer is charged during the defined term. The merchant sets the minimum and maximum purchase limits, and such transactions do not affect credit score.
As for trading ADRs - this step gives the company more flexibility. According to the United States market conventions, American Depositary Receipts are preferred over ordinary shares because they are traded, cleared, and settled. They allow easy comparison to securities of similar companies, access to price and trading information, dividend payments, and corporate action notifications. Depositary receipts also allow non-US companies to make their shares available not only in their home markets, thus giving the investors throughout the world to invest on a global basis.
Splitit’s Level I American Depositary Receipts are traded in the US on the over-the-counter market (OTCQX) using the ticker SPTTY. The depositary bank for the receipts is BNY Mellon.
Currently, the Splitit ADRs can be purchased through a typical broker. Direct purchase of the receipts from Splitit is not possible. Also, there is a way to convert ordinary shares into American Depositary Receipts.