Forbes: How Splitit Helps Retailers Make More Money By Offering Customers Installment Payments

https://www.forbes.com/sites/pamdanziger/2019/02/09/how-splitit-helps-retailers-make-more-money-by-offering-customers-installment-payments/amp/?__twitter_impression=true


Unlike similar services, such as Afterpay or Sezzle, which offer installment payments too, Splitit doesn’t require the customer to setup an account or download an app like the other services do. Everything is handled behind the scenes between the retailer and Splitit, no separate intermediate step is required by the customer.

Limited neither by geography or direct customer interface, Gil Don, the company co-founder, describes Splitit as a conversion tool.

For consumers it is a cash-flow management tool. For online retailers, in particular, it fights shopping cart abandonment. For example, Splitit research found that about one-third of shoppers said they are more likely to make a purchase if offered monthly installment payments.

But even more important than driving conversion, Splitit is a way for retailers to upsell customers and get them to choose the more expensive option. Don provides the example of someone considering a washing machine purchase.

Splitit reports that 67% of shoppers said they would be more likely to make bigger purchases, such as large electronics or furniture, if they are able to pay in monthly installments. 

The retailers that will benefit most from the Splitit option are those with strong traffic already, but that want the extra boost that offering Splitit’s flexible-payment option can give.