Maybe at these prices lots of new buyers might start to find it attractive and jump in, so I thought we could start a thread that talks about how SPT differentiates itself in a crowded BNPL space.
Not saying that makes it better or superior in any way but just what makes it different.
In summary, here are 3 things that differentiate it:
It does not issue any new debt to the end consumer. Instead it leverages the customer's existing credit card facility. "Splitit is the only global payment solution that enables shoppers to use available credit on their credit cards for monthly interest-free instalments at the point of sale."
As such, there is no application nor credit check involved to the end customer (little friction for end users)
SPT does not charge any fees or interest to the end user. "No interest charges or fees means shoppers only pay the price of the purchase they are making"
In more detail.
1. It does not issue any new debt to the end consumer This promotes the responsible use of credit and will likely help it avoid greater regulatory scrutiny as some other BNPL players may face.
"In an increasingly crowded buy now, pay later market, Splitit continues to stand out because we don’t issue new debt to shoppers. This is intentional and links directly to our strong belief in the responsible use of credit. We believe consumer protection regulation is necessary for any provider of credit to consumers, whether by credit card or via a buy now, pay later provider."
The fact that it leverages existing credit cards already in place lets it tap into a large potential market for end users.
"The market we are forging a presence in is enormous. There are more than 1.8 billion credit cards across the globe, with most credit card holders only utilising 25% of their available balances. This presents a massive opportunity in the retail eCommerce space where worldwide sales reached US$3.53 trillion in 2019 and are expected to grow to US$6.54 trillion by 2022."
2. There is no application nor credit check involved to the end customer This leads to less friction to shoppers. A benefit is shoppers don't need to apply for anything or get a credit check on their credit record. They just need a credit card which many people already have.
3. SPT does not charge any fees or interest to the end user So the end user only pays the price of the purchase they are making.
No hidden fees or charges to consumers.
SPT only makes its money from merchants. It takes a cut for helping merchants:
Granted, some people here aren't too impressed with management, I agree that the announcement yesterday to try and get more incentives came at a bad time. But that's what shareholders can use their voting rights for. And don't conflate poor management with a good business model.
SPT Price at posting:
89.5¢ Sentiment: Buy Disclosure: Held
