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The buy-now-pay-later e-commerce specialist Splitit has picked up a pair of new partnerships in recent days.
The company announced this week that its Buy Now Pay Later (BNPL) solution will be available across Shopify’s network of 800,000+ merchants in 20 different countries. Splitit also has teamed up with point-of-sale financing company Divido to make its BNPL offering available to the company’s 1,000 banks, merchants, and partners. The Divido integration will go live initially in the U.K., and shortly afterwards launch in the U.S.
“The feedback we consistently receive from merchants is that consumers are looking for better ways to manage their cash flows,” Splitit CEO Brad Paterson said. He highlighted the high number of credit card holders and the upwards of 70% of balances that remain untapped, and said that Splitit provided a better way for consumers to manage cash flow.
Paterson added that improving cash flow for consumers was a good deal for merchants, as well. “By making customer purchases on credit cards more affordable, merchants are also converting more sales and growing their average transaction values, delivering significant benefit to everyone involved,” he explained.
Splitit’s partnership news comes as the company, which debuted at FinovateFall 2014 as PayItSimple, announced a string of agreements with a diverse set of U.S. brands ranging from sleep technology specialists to luxury retailers to accountancy services. Paterson referred to the new agreements as part of the company’s growth strategy in North America, a strategy that also includes plans for new leadership in the region. Current CEO Paterson was previously in charge of North American operations and will relinquish those responsibilities once a replacement is in place.
Over the summer, Splitit announced a partnership with GHL ePayments that will make its installment payment offering available to 2,000+ online merchants in Southeast Asia. Also this year, the company teamed up with EFTPay to bring its buy now pay later solution to merchants in Hong Kong and Macau. Australia-based retailer Kogan announced in July that it would offer Splitit’s payment option, making it the first retailer in the country to do so.
Founded in 2013, Splitit is headquartered in New York. The company has offices in London, and an R&D center in Israel. Splitit has raised more than $43 million in funding, most recently including a post-IPO equity fundraising of $20.5 million (A$30 million) closed in May.
A new partnership between Splitit and payment service GHL ePayments will make Splitit’s installment payment solution available to more than 2,000 online merchants in Malaysia, Thailand, Indonesia, and the Philippines. The deal will allow GHL to offer Splitit’s installment payment option to its customers, and enable Splitit to grow its presence in the Asia-Pacific region, according to company CEO and co-founder Gil Don.
“We are delighted to offer GHL merchants a simple way to boost sales and improve customer satisfaction by offering interest-free installments at the checkout,” Don said. “Splitit’s payment solution is a highly effective way for merchants to ease eager travelers’ budget woes, while increasing brand loyalty for merchants.”
Splitit enables consumers to divide the cost of online purchases into no interest, no fee monthly installments. Consumers can use their existing debit or credit card to make purchases from participating online merchants, choose the Splitit option, and receive instant approvals. The company notes that merchants have seen an 11% decrease in cart abandonment, a 12% increase in sales, and an 80% increase in average order value (AOV) after deploying the technology.
Danny Leong, Group CEO of GHL Systems Berhad, praised Splitit as a unique addition to the suite of solutions GHL provides to its merchant partners. “Splitit’s non-lending offering is unlike any other payment player’s and we believe this partnership will help us continue our growth as ASEAN’s trusted payment experts,” Leong said. One of the major merchant acquirers in the ASEAN region, GHL processes more than $241 million ($350 million AUD) in total online and offline transaction value each month across its merchant network. The firm manages more than 368,000 point of sales in Malaysia, the Philippines, Thailand, Indonesia, Singapore, Cambodia, and Australia.
Making its Finovate debut as PayItSimple in 2014 at FinovateFall, the company rebranded as Splitit a year later as part of an emphasis on serving “all members of the credit card payment ecosystem.” More recently, the company partnered with EFTPay to bring its installment payment option to merchants in Hong Kong and Macau, and teamed up with Australian retailer Kogan. Splitit also bolstered its executive ranks this summer, adding former Intuit and PayPal executive Brad Paterson to lead its North American operations.
Based in New York City, Splitit announced a post IPO equity round in May, raising $20.7 million ($30 million AUD). The funding followed the company’s successful IPO on the Australian Stock Exchange at the beginning of the year. Trading under the ticker SPT, Splitit has a market capitalization of $200 million.
As Finovate goes increasingly global, so does our coverage of financial technology. Finovate Global: Fintech News from Around the World is our weekly look at fintech innovation in developing economies in Asia, Africa, the Middle East, Latin America, and Central and Eastern Europe.
Central and Southern Asia
ACI Worldwideinvests in Mumbai, India-based payments innovator, Mindgate Solutions.
Pakistan’s Bank of Khyber to deploy new core banking system from Temenos.
Infosysearns recognition as a ‘leader’ in the IDC MarketSpace: Worldwide IT Service Management (ITSM) Implementation Services 2019 Vendor Assessment.
Latin America and the Caribbean
Brazilian fintech Creditas picks up $200 million investment from Japan’s Softbank, boosting the company’s valuation to $700 million.
Crowdfund Insider reveals the 3 Biggest Fintech Trends Shaping Latin America.
Amero-Isatek to open its first brick and mortar cryptocurrency exchange in Mexico’s Nuevo Leon, Monterrey.
Splititpartners with EFTPay to bring installment payments to merchants in Hong Kong and Macau.
Vietnam’s MSB (Maritime Bank) picks SunTec for its customer centricity system.
Morocco-based BMCE Bank of Africa to leverage technology from Temenos to drive new corporate banking and trade finance operation in China.
Global Finance investigates the rise of Africa’s entrepreneurial class in the private banking industry.
Finextra looks at three reasons why fintech is driving change in Africa.
Standard Bank introduces new Mastercard-powered ditital trade solution, SimplyBlu, for SMEs in South Africa.
Central and Eastern Europe
Wallet, the PFM app from Prague-based fintech BudgetBakers, earns license from Czech National Bank to join the bank’s APIs.
New lending platform for “multi-credit” services, Omnicredit, goes live in Romania.
Global Finance interviews Alexey Krgulov, Acting Director of Digital Business Platform with Sberbank.
Middle East and Northern Africa
Turkey’s Isbank partners with Russian PSP Yandex.Checkout to support e-commerce between the two companies.
Disrupt Africa features MerQ, an Egyptian startup that leverages AI to promote financial literacy.
AMEinfo publishes its report on banking and fintech in the Middle East and Africa.
Splitit, formerly PayItSimple, expanded its offerings this week by launching its installment payment solution for debit cards. The new functionality is available for shoppers at participating merchants in the U.S. and Europe.
The debit card payment tool enables customers to split their purchases of $400 or less into three interest-free monthly payments using their debit card. This is available alongside the company’s flagship offering, which allows customers to split the cost of an item into up to 12 interest-free payments using their credit card, without a credit check or the need to take out a line of new credit.
The New York-based company anticipates the expansion will grow consumers’ purchasing power and allow merchants to offer more payment options and increase sales revenue. Gil Don, CEO and co-founder of Splitit said, “With millions of dollars’ worth of purchases at stake, retailers must ensure a seamless, efficient and customer-centered checkout process, and Splitit is the only payment method solution that truly does this – with no applications, no interest and instant approval. We are happy to be increasing consumer purchasing power, which translates to better outcomes for customers and retailers alike.”
Founded in 2013, Splitit serves 800 merchants in 25 countries. The company launched as PayItSimple at FinovateFall 2014. In June 2016, Splitit launched a plugin in Shopify’s app store that allows merchants using Shopify to integrate Splitit into their checkout process.