This week Splitit, a well-known BNPL (Buy Now Pay Later) provider headquartered in New York, USA, launched a new platform - Installments-as-a-Service. This technology aims to simplify existing shopper and merchant relations by using an existing purchase flow based on credit cards.
The main difference between this platform compared to other BNPL services is that it does not create any new loans. Instead, Splitit uses the existing consumer credit on the cards. Also, the platform is integrating into existing payment gateways. All this helps to make the checkout process more straightforward.
The installments-as-a-Service platform was created to resolve the current issues of the BNPL checkout process, such as low credit approval rates, decreased checkout conversion, and regulatory bureaucracy. The new technology bypasses all this since all that is needed is an available balance on the credit card. Also, Splitit states that there is no application, interest, hidden fees, or changes to the customer’s credit report.
The first merchant to implement the new technology is OCM (On Campus Marketing) - online retail of university-approved merchandise for campus living, gifting, and special campus occasions, headquartered in Bethesda, Maryland, USA.