Compare the merchant getting his money upfront to the one who...

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Tekvest

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08/11/23

18:30

Post #: 70792841
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Originally posted by sneef: ↑

COMPARE SPLITIT to OTHER BNPL MODELS

With thelatest RBA interest rate rise now reaching 4.35% I am trying to understand how competitive the pricing structure is for SplitIt when compared to a pure BNPL loan providers such as AfterPay.

The GAP between the two is as follow:
SplitIt fee: CREDIT Card (~1.5%) + SplitIt Fee( ~1.5%) = max3%
BNPL fee: Afterpay (4%-6% commission where 4.35% goes towards burrowing the money to loan)

This means in averaging out the costs charged betweenthe credit cards and BNPL loan providers a merchant will pay between 1.35% - 3% more per transaction to use a pure BNPL service.

Note:
1.35% = 4.35% min – 3% max
3% = 6% (max BNPL) – 3% (Max Credit Card)

IMO the SplitIt model willsucceed over time.
Why?
1.Up to 3% less in merchant fees
2.Pay after delivery feature.
3.No marketing fees.
4.No customer bad debts
5.No friction at the POS or Online (no need to provide personal details to get a loan)
6.Gain reward points on every purchase
7.B2B capability

any feedback would be appreciated on my above research - it just seems at this point in time SplitIt is miles ahead of its opposition accept when it comes to being heard of as it is still unknown.

Working Notes from the WEB
A BNPL transaction costs on average around 4-8 per cent of the value of the purchase,compared with an average of 0.5–1.5 per cent for traditional card payments.

13 July 2023

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Compare the merchant getting his money upfront to the one who has to wait for the customer's instalments using SPT

SPT Price at posting: 5.0¢ Sentiment: None Disclosure: Not Held
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Compare the merchant getting his money upfront to the one who...

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