Splitit, touting itself as a responsible BNPL (buy-now-pay-later) option, is a payment method that allows online shoppers from selected platforms to pay for their purchases in installments (varying from 2 to 36) without additional interest or fees and registrations or applications; merely by using their existing credit cards.
The platform started developing its services in 2012 and has raised $250 million in funding. Its headquarters are in Atlanta, its R&D center in Israel, and its offices are in Australia and London. Splitit is listed on ASX (Australian Securities Exchange) under the SPT ticket code, and the platform is PCI-DSS compliant, which states that it follows industry-standard security protocols to safeguard users’ information.
When online shoppers complete a purchase from the partnered platforms, Splitit ensures that the provided credit card has credits available for the entire purchase and may place a pre-authorization hold equal to the remaining balance amount, which will appear as a pending transaction on the statement. The first installment will be charged on the day of purchase and the rest on the same date of the following months.
Advantages of Using the Platform
Compared to the other buy now, pay later options, Splitit offers a decent deal to the users, allowing them to pay off their purchase amount in pre-decided installments without any additional fees or charges, and compiles with Mastercard, Visa, and UnionPay operating standards.
The main advantages which make it an ideal payment buy now pay later option include the following –
- When opting for installment payments through Splitit, customers need not pay any extra charges or fees during the payment tenure. However, if customers end up carrying a balance on their credit card, card issuers have the right to charge the regular purchase APR.
- Splitit platform supports 7+ different languages, including German, French, Japanese, Italian, Russian, Spanish, Chinese (Simplified), and English.
- High-end retailers, furniture boutiques, luxury brands, electronics, jewelry, music, and other business niches have partnered with Splitit to promote buy-now-pay-later services. A few online retailers include Purple, Braun, Instal, Nectar, Ace Marks, Best Brilliance, Canyon, House of Bling, and many others.
- Paying in installments using Splitit does not affect the user’s credit scores.
- Users also have the option to make additional contributions and need not wait to complete the installments. All they need to do is log in to the shopper portal or contact customer executives for the details.
- Splitit earns by charging a commission for BNPL services from merchants while facilitating cheaper options for merchants to receive payments in installments.
How to Use Splitit?
Splitit can only be used for online purchases. Offering an easy-to-pay interface, users do not need to log in to the platform to make payments.
Splitit is accessible right on the merchant’s website during checkout. All you need to do is –
- Select Splitit as your payment method during checkout.
- Select the number of installments you want to pay, varying from 2 months to 36 months.
- Merchants have a first-hand role in deciding the range of months they want to offer, and customers have to choose from the selected range further.
Lastly, if the customer requests returns, the merchant must notify Splitit, which will reimburse the amount already paid and cancel the remaining payments.