Ann: Splitit to Launch In-Store with Multiple New Merchants, page-43

I like it. Its exactly as I picture aswell.
Next step is to add hypothetical $ MSV values and transaction fees and resulting revenue at each stage for both parties.

And then the next most crucial step is to compare those revenues for each party to the CURRENT AMEX/Bank models without splitit with the exact same base MSV and see who benefits and who does not. So a model without splitit and a model with splitit. The importance of comparing to CURRENT models/revenues is what will drive the change.

The findings will show who is taking a pay cut. And who will benefit more. And therefore if it is CURRENTLY beneficial to AMEX/Banks.

Revenue for AMEX must increase while splitit gets the 3% of MSV. Is this achieved?

When you do the revenue numbers then as an exercise replace the AMEX symbol with any other Bank plus a Visa/MC symbol and follow the $ again. What changes?

My feeling is...the extra revenue in the model comes form MERCHANTS being charged for BNPL priveledge which goes to Splitit which they accept for increased sales and reduced cart abandonment. So Splitit takes the additional merchant charges...Yes...3%. And merchants are already charged transaction fees by AMEX so that offsets. Who is therefore taking the pay cut? Where is the additional $$$ coming form in the system for both Splitit and AMEX to get a pay rise? Enough of a rise for AMEX to exceede their potential losses in interest charges.

So will they increase overall revenue for themselves by partnering with Splitit?