It is correct that they have stated the funded model is being...

It is correct that they have stated the funded model is being wound back and they have switched to now prioritising the un-funded model.
(Nothing for the consumer changes)

That re-focus can possibly be said to go hand in hand with the company direction of targeting larger merchants.

Larger massively profitable merchants are more accepting of the un-funded model as they have millions rolling in monthly and their short term cashflow is not a necessity for ongoing operations and only increased overall sales are all that matter to them. (un-funded cheaper for them aswell over time so both splitit and large merchants win)
Smaller merchants would lean to the funded model as they would be more likely to need cashflow from each sale to continue to operate so pay a premium to splitit to get their funds. (but if they did not need cash upfront they are stupid to go funded model and be charged more)

Focusing on larger merchants is therefore enabling them to also a focus/prioritise and get more users onto the more profitable un-funded model.

Doing some quick numbers shows that the funded model on longer term installment plans (+12mths) almost becomes non-profitable after splitit pays interest. (before goldman sachs warehouse reduction of interest rate). The focus is a good strategy to improve the margins to splitit.