I don't quite understand tbh.Filling in your credit card detail...

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naisukebin

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04/09/20

23:59

Post #: 47106071
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Originally posted by ajb108: ↑

Besides the mention of Splitit I thought the most interesting thing discussed in the Business Wire article that was shared was the following quote:

Nearly three quarters of consumers interested in installments prefer the feature be added to an existing card, according to Mastercard research. [1] Incite Installment Research – April 2020

This flies in the face of what some other BNPL companies have been saying here. Am not suggesting the other BNPL companies in Australia are lying, though it would appear they are selective with the data they are sharing to make their argument appear more attractive to investors. To be fair, this article is more of a summary from a corporate press release from Mastercard too. If you have a sceptical mind it is always good to look beyond the press releases and investigate the data from independent sources that are out there on the net.

Mastercard's case does however make sense. If you were given the opportunity to:

1. Instantly, use your existing card and not have to sign up to anything new or open a new BNPL account whilst retaining the ability to build your credit score and collect the rewards you are invested in.

OR

2. Sign up to another service, fill out forms, download another app etc whilst loosing the ability to collect your points or contribute to your credit score

What would you choose?

It would appear Mastercard is certainly sold on the BNPL phenomenon now and has a desire to facilitate instalment solutions for their customers:

Three out of four Americans who have tried installment plans for the first time during the pandemic plan to continue using them after it is over, according to Mastercard research, indicating the desire for solutions that empower consumers is paramount. 2] Harris: Digital Study, July 2020

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I don't quite understand tbh.

Filling in your credit card detail manually every time you make a purchase sounds way more cumbersome and insecure to me. I would rather sign up once and have a smooth experience thereafter. Also having an app to track your repayments and make early repayments doesn't sound like a bad thing at all.

I haven't used splitit before though so I could be missing something. Please enlighten me.

SPT Price at posting: $1.51 Sentiment: Hold Disclosure: Held
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