Splitit provides two options to merchants. Option 1 is as discussed, the installment payment. As customers will pay their credit cards as per the installment plan, fund gets released to the merchants. it costs merchant 1.5% of sales value + USD 1.5 per installment. Option 2: The merchant gets the full payment in 3 business days of the transaction. merchant pays for 1.5% of sales value + the credit cost. SPT passes on the cost of borrowing money to upfront the payments to the merchant. I am not aware of terms though.
Currently 60% merchant are on Option1 and 40% on Option 2, SPT is expecting that this ratio will get reversed in the long term and 40% merchants will be on option 1.
SPT has the funding facility with Simpel LLC (USA) and Honeycomb Finance (UK).
SPT Price at posting:
96.5¢ Sentiment: None Disclosure: Not Held
