Visa just killed SPT?, page-38

Your comparison here is all wrong. Visa and Mastercard are already here and just not offering the split payments option yet.

I don't know the exact percentage of via and mastercard credit cards compared to the rest of the cards on offer but i would say that visa and mastercard together easily corner the world market when it comes to credit cards. Perhaps even north of 95%.

The problem for splitit is this. They use the existing facilities provided by mastercard and visa to do its split payments by taking a hold of x amount for y months. People still have to ensure they pay the amount off within the interest free period that is set by the bank that issues the cards (eg 30 days or 40 days or 50 days interest free) otherwise they will be hit with interest on the credit they have just taken on.

By using the facilities provided by your supplier (in this case via and mastercard and the bank credit network) it becomes very problematic when Visa and lets say Mastercard in the future make the same facility available). In this case your supplier also becomes your competitor and can easily undercut you because they are already making a cut from the credit card transaction anyway.

The share price also takes into account the future viability and growth of the company. My thoughts were that SPT was excessively over priced at 90c when the income to market value was well over 200 times especially when the company wasn't making a profit yet other people were indicating the potential for future growth.

In comes the specter of Visa and potentially Mastercard coming in. This automatically reduces the potential market share for SPT. Doesn't matter if it hasn't hit Australia yet. Australia is a drop in the ocean when compared with credit transactions happening overseas. Just because SPT is listed in AUS doesn't mean its sole focus is the Australian market.

So when you have a supplier who will soon also become a competitor it does reduce the market share that a 3rd party supplier like SPT can get .. hence the southward direction of the shareprice.