Splitit’s Latest Merchant Sales Volume Run RateCurrent...

Splitit’s Latest Merchant Sales Volume Run RateCurrent Transaction Volume and Run RateSplitit’s global Merchant Sales Volume (MSV) run rate is approaching the three-quarters of a billion dollar mark as of 2023. In the third quarter of 2023, Splitit processed US$124 million in MSV – a 30% year-over-year increase for that quarter . This strong Q3 put the company on pace to reach an annualized MSV run rate of roughly US$700–800 million by the end of 2023 . For context, Splitit had previously hit an annualized run rate above US$500 million in late 2021 , and its MSV in Q4 2022 was about US$141 million (a 9% YoY gain) . The accelerating volume in 2023 reflects renewed growth momentum after a strategy shift, with more merchants adopting Splitit’s installment solution and pushing its transaction volumes to new highs.Growth Trajectory and Yearly ComparisonSplitit’s annual merchant sales volume (MSV) in 2020, 2021, and 2022. The company’s MSV grew from US$246 million in 2020 to US$396 million in 2021 (+61% YoY) , then to US$431 million in 2022 (+9% YoY) .This growth trajectory shows an early surge followed by a more modest rise during a pivot period. 2021 was a breakout year – MSV soared 61% to $396M – culminating in a Q4 run-rate above half a billion dollars. Growth then slowed to 9% in 2022, with MSV reaching $431M as the company underwent a “transitionary” year of refocusing. Splitit deliberately churned some unprofitable merchants and relaunched its service as a white-label platform in 2022 , which tempered short-term volume gains. By 2023, however, growth re-accelerated: H1 2023 MSV was $248M (up 27% YoY) and Q3 2023 alone was $124M (+30% YoY) , signaling that the new strategy has been driving volume back onto a strong growth trajectory.Merchant Adoption and PartnershipsMerchant adoption of Splitit’s installment platform has expanded globally, underpinned by new partnerships with major payment players. The company now works with nearly 1,500 merchants worldwide (about 20% of which are mid-market to large enterprises) . Over the last two years Splitit has inked deals with big names like Google, AliExpress, Checkout.com, Worldline, Ingenico, and Visa to embed its installment solution into their checkout or payment platforms . For example, its partnership with Visa (announced in 2023) will integrate Splitit’s installment-as-a-service into Visa’s network, allowing banks and merchants to offer Splitit’s BNPL option directly within the standard credit card process . Similarly, agreements with payment processors (like Worldline and Checkout.com) aim to seamlessly offer Splitit’s installments to hundreds of thousands of merchants via those platforms . These distribution and enterprise partnerships are helping Splitit rapidly scale merchant adoption without relying on costly direct-to-consumer marketing. According to the company, the pipeline of large merchants going live in late 2023 is a key driver toward its ~$0.7B run-rate goal .BNPL Offering Trends and DifferentiationA notable trend in Splitit’s BNPL offering is its white-label, card-based approach, which contrasts with legacy pay-later models. Unlike traditional BNPL providers that issue new short-term loans at checkout, Splitit lets shoppers split purchases using their existing credit card limits – with no additional interest, applications, or late fees . This installments-as-a-service model is embedded directly in the merchant’s own checkout flow, so the customer sees the merchant’s branding (not a third-party BNPL brand) and enjoys a fast, native experience. Early results showed this approach can boost sales: for instance, OCM, the first merchant to implement Splitit’s fully white-labeled checkout, saw a 41% jump in total sales and a 54% increase in order volume versus the previous version of Splitit’s plugin . The white-label BNPL option not only improved conversion rates but also lets merchants retain ownership of shopper data and loyalty (Splitit pointedly does not harvest customer data to cross-sell elsewhere like some BNPLs do) .Splitit’s use of the customer’s existing credit line also means higher approval rates and lower risk. Because transactions are still processed on the shopper’s credit card, the usual card issuer protections and underwriting apply, avoiding the need for Splitit to assess credit or absorb default risk . This has opened up opportunities in segments that were underserved by legacy BNPL, such as high-ticket purchases and small-business transactions. In fact, Splitit is expanding into B2B BNPL: about 12% of its volume now comes from business buyers (e.g. a sole proprietor using a corporate card), and the company aims to grow B2B to ~30% of volume by mid-2024 . These use cases – where a business is buying from a merchant like any retail customer – have been historically difficult for BNPL providers to underwrite, but Splitit’s model can serve them since the buyer just uses their card credit .Another trend is the overall increase in consumer adoption of card-linked installments. According to a 2024 Splitit study, most merchants have seen significant growth in installment usage – up 82% in-store and 68% online – indicating strong consumer appetite for this type of pay-later option . Splitit’s management has highlighted that its “installments-as-a-service” aligns with the needs of larger merchants and financial institutions looking to offer BNPL functionality without taking on credit risk . With its differentiated approach, Splitit has been able to grow steadily while many traditional BNPL firms face profitability challenges. The company even earned recognition on the 2024 FT Americas’ Fastest Growing Companies list, reflecting its success in scaling volume and revenue . Looking ahead, Splitit’s leadership sees a path to much greater volumes – they have identified a $2–4 billion incremental MSV opportunity in the next 3 years by expanding via these partnerships and new use cases . Overall, Splitit’s global MSV run rate is at a new high, fueled by its white-label BNPL model, growing merchant network, and the broadening appeal of card-based installment payments.