Investor enthusiasm for digital payments seems limitless at the moment, even though the sector continues to generate impressive losses.

ASX-listed instalment payments provider Splitit Payments Limited is one of latest startups to ride the wave.

Splitit’s share price edged close to a record on Monday after more than doubling its June half loss to $US 8.9 million.

Splitit’s share price has surged more than ninefold since April on expectations that it will develop a platform likely to erode the revenue of credit card issuers in the United States.

While the company is listed on the ASX, most of its business activities occur in the US where it has forged a base of 309,000 shoppers and more than 1000 merchants.

Splitit allows shoppers to split paying for online purchases between a credit or debit card and its branded buy now pay later instalment product.

As with many other entrants to the BNPL field, share market support for the company is being driven by volume growth rather than earnings.

Splitit reported a 133 per cent rise in merchant sales volumes (MSV) to $US 89 million in the first half, which allowed its gross revenue to more than triple to $US 3.1 million.

“Splitit’s value proposition for merchants and consumers has proved to be more relevant now than ever, “ said CEO, Brad Paterson.

“This, coupled with strong execution of our high-growth strategy, has helped us deliver record MSV and revenue in the half year.

“The momentum is continuing into the second half, with a number of leading brands recently agreeing to accept Splitit.”

Although Splitit’s volumes account for a faint fraction of the US instalment payments market, the company has been amply rewarded by Australian investors.

The share price has surged from 20 cents in April to a high of almost $2 in August.

At Monday’s closing price of $1.86, the business has a market worth of more than $540 million.