Splitit - The positives - In my opinion!
(1) There is no signup required. No credit checks.
(2) The application can be rolled out globally unlike other!platforms, so if a merchant is global, they can use Splitit in pretty much all their localities.
(3) They're not a 4 x fortnightly installment company, etc. They allow for monthly payments up to 36 months, amazing for consumer cash flow.
(4) They don't charge interest or late fees, amazing for the consumer.
(5) The merchant pays a very small fee, pretty sure it's cheaper than all other platforms, so they're extremely competitive.
(6) If said merchant wants payment upfront, this can be financed, and cheaper than Afterpay, Zip, etc. as Splitit has been very clear that they simply pass on these costs, they don't load them up to make extra margin.
(7) Average purchase using Splitit is around $1000 (vs Afterpay around $150).
(8) Splitit has no credit risk. Importantly they also have no regulatory risk.
(9) The team has consist of ex banker, ex credit card exec, ex PayPal, ex Klarna. That's a strong team.
The negatives - In my opinion!
(1) Starting behind many other payment businesses who have a head start.
That's really it! Some might say "they have no merchants" or "sh#t merchants" etc, etc. However the reality is they have as much going for them, or more, at the same stage as Afterpay and co.
Anyway, that's what I read, see and hear. Just seems like a stronger business model than all the others, only it's just getting started.
Afterpay clearly have an amazing team. Zip too. If Splitit has a superior model and can match the team/execution then it could trade at multiples of where it is now.
I also think that if they listed at $1.00 and were now $1.60, much of this conversation would disappear!!!! The fact is a small firm did the raise, probably far too cheap, and so now it looks crazy.
As per a previous post of mine, I think Afterpay listed with similar metrics and a valuation around $240M, these guys listed around $40M?
Maybe all this controversy is simply because the valuation was so wrong, not the business model or opportunity?
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