By end of 2022, every online merchant will have a BNPL solution - one will be credit providers (e.g. Affrim, Zip, APT, SZL) and the 2nd one will be a credit card based installment option - as of this moment, SPT is the only global solution agnostic to the card issuer and the payment processor (e.g Tsys, GP) that can provide a full solution to those merchants and with a granted patent.
An additional and IMO most important point is - merchant is looking for a funding solution (getting the full amount of the purchase up front) also in this case -SPT is the only one that can provide this option, the issuers or the payment processor can't provide it !!! why ?
reconciliation is the challenge - SPT is not just a front end solution providing a nice interface at the checkout - it took them years to develop a back end solution with a full reconciliation system that eliminates any default risk.
as an example - a shopper purchase a $1,000 product and splitit into 10 installments - let's call it transaction A1
1. Merchant will receive those $1,000 to his account from SPT ( the actual funds are coming from 3rd party financial institutes) 2. SPT system will charge the consumer 100 every month in the coming 10 months
A1 is opened for the coming 10 months until all 10 X $100 is paid during this period.
two scenarios -
1. the consumer is charged every month and every payment is processed and charged to his card until fully paid
2. default - as an example the consumer paid 4 installments and the system can't charge the 5th one because of nonsufficient funds on the consumer credit card.
it is all managed in the backend - if the issuer/payment processors would like to do it they need to develop it from scratch and will be able to provide it only to limited users.
if you ask yourself why MC and Visa and maybe in the future AMEX partnered with SPT it's because of SPT 360 degrees solution that provides full frontend and backend solution supporting all the major payment processors, all Visa and MC issuing banks around the world, and all the major online platforms (e.g. Shopify, Magneto, etc...)
IMO we will see the same growth of SPT in 2020 also in the coming years.
SPT Price at posting:
$1.42 Sentiment: Buy Disclosure: Held
