Splitit

Splitit is a BNPL service provider allowing customers to split transactions into 6-24 monthly installments. Notably, customers can apply the service to their existing credit card limits. This is contrary to other B2C providers that extend new credit to customers in partnership with a lender. Therefore, Splitit receives its installment monthly, and the customer is only subject to interest or late fees from their card-issuing bank. The company houses its development team in Israel. Splitit is led by Brad Paterson, CEO, who has more than 20 years of experience at fintech companies, including PayPal, Visa, and Intuit.  In September 2019, Splitit launched its B2B solution, allowing businesses to use their existing commercial credit cards to split transactions into installments.

Splitit introduced SplititExpress in April 2023, an optimized white-label payment installment offering that allows users to pay with their credit cards and select the number of payments. This was followed by its unveiling of  “Installments-as-a-Service” which is a white-labeled BNPL solution for merchants in May 2022. The new solution, available as an API and embedded into the merchant’s existing checkout process is expected to give more control to the merchant by promoting brand consistency and customer loyalty. 

Splitit generates revenue through merchant fees in two models, 1) a funded model, where merchants are paid the order value minus merchant fees upfront, and 2) a non-funded model, where merchants are paid over time and invoiced as customers pay off installments. In the funded model, Splitit charges 4% (depending on the installment period) plus USD 1 per installment, while in the non-funded model, it charges 1.5% plus USD 1.50 per installment. The platform’s average order value stands at USD 1,000 as of June 2021. 

Key customers and partnerships

In May 2023, Splitit partnered with Visa to provide customers with an installment payment solution to settle credit card payments. Through this partnership, Splitit planned to support its business development prospects and improve its brand recognition. The company also partnered with Atlantic Pacific Processing Systems (APPS) , a payment solutions provider, to integrate its BNPL solutions into APPS’ white-label payment processing tools and APIs, such as branded enterprise and independent software vendor (ISV) platforms, QuickBooks’ SaaS, and POS integrations. This followed numerous partnerships to grow its global reach including that with embedded financial services solutions provider Rapyd (April 2023), global payments platform Ingenico ( February 2023 ), and payment and transactional services company Worldline (January 2023).

Splitit entered the Japanese market by striking a partnership with Google (January 2021), which would allow customers to use installments for Google Store purchases for the first time. This was extended in December 2022 to also launch the installment solution in the USA, Canada, and Australia. It further widened its merchant reach through an integration with Salesforce Commerce Cloud in September 2021. Splitit also partnered with Discover Global Network in October 2021 to offer BNPL payment plans to its cardholders globally. 

Funding and financials

In August 2023, Splitit raised USD 50 million (~AUD 76 million) in funding from Motive Partners. The proposed investment consists of two USD 25 million tranches in exchange for the issuance and placement of new preference shares. In July 2023, Splitit raised USD 10 million in convertible note financing from Thorney Investment Group and Perea Capital. It planned to use the proceeds to strengthen its financial position and support general business operations including settlement of a customer dispute. In September 2022 , the company raised  AUD 10.5 million (~USD 7.25 million)  in funding through private placement with institutional investors. Although headquartered in New York, Splitit was listed on the Australian Securities Exchange in January 2019, raising AUD 12 million (approximately USD 9 million) in the process. In October 2023, the company announced plans to voluntarily delist from the Australian Stock Exchange (ASX) and redomicile the company from Israel to the Cayman Islands.

In FY2021, Splitit reported USD 11 million in revenue, reflecting a growth of 48.7% YoY. This was driven by merchant sales volume (MSV) growth of 61% YoY, which stood at USD 396 million in FY2021. However, Splitit’s operating loss worsened to USD 29.1 million in FY2021 from USD 19.9 million in FY2020.

Key competitors: None comparable (Splitit uses customers' existing credit card limit for BNPL transactions)