Watch This Space, page-1602

I have a strong feeling that these “advanced negotiations” are with PayPal. It makes so much sense for the following reasons:

1. Brad’s connections to PayPal having worked there
2. Revenue generation is much more logical than say with Visa or MasterCard
3. PayPal is historically a payments processor and this has been there downfall with previous short term financing products. They aren’t able to asses credit risk management at a granular level like BNPL players can (This is also why SPTs technology would benefit them greatly)
4. Ease of integration as card already available with PayPal

Whilst PayPal has launched Pay in 4 it is actually a different service offering to Splitit.
- Order value is limited $30-600
- Soft credit checks are required
- Late fees
- Not linked to existing credit

All of these are redundant using Splitit’s technology.

Therefore, scalability would be huge as it would open up Splitit to millions of merchants that offer PayPal. Is this why we haven’t been hearing anything about new merchants? Further to this, the revenue would be generated through PayPal’s fees as opposed to how it would work with say Visa or MasterCard. Worth noting we haven’t had an update on either of these pilots...

Perhaps Splitit knew this was the strategy all along and hence they hired Brad to make it happen.

Splitit can give PayPal everything they need to dominate the BNPL space. As Brad said he doesn’t see them as a threat...

Watch this space.