A Better Solution to Consumer Financing
It is 8:37pm on a Sunday night. Jeremy is sitting in his living room, sipping a glass of wine and scrolling through a watch retail site on his iPhone X. Jeremy’s grandfather has convinced Jeremy it is time to buy a name brand watch from a respectable company to replace the knock off calculator watch he wore in college. Jeremy chooses a watch he likes, and proceeds to checkout. He hesitates. Does he really need a $600 watch? He glances down to his wrist. It won’t tell time better than the one he has now…before he closes the page, an option at checkout catches his eye: “$600, or 6 monthly payments of $100!”
“Yes please.” He thinks.
However, Jeremy’s enthusiasm quickly becomes impatience, as he is redirected to a new page, enters his email, phone number, confirmation code, other personal information, and finally presses “Create an account.” His impatience then turns into anxiety as he hesitates before pressing “Check eligibility.” Is his credit score high enough?
“Success!” He only had to pay $100 at checkout! Jeremy has essentially taken out a new loan, and as for interest, potential late fees and credit risk… that’s just a future Jeremy problem.
Why consumer financing?
Consumer financing is gaining popularity as a checkout option, and for good reason. For merchants, it increases AOV (Average Order Value), decreases cart abandonment and generates more sales. For shoppers, the idea of ‘paying over time’ can often encourage them to buy higher ticket items, that before might have been out of their budget. However, these financing options come hand in hand with inconvenient application processes, late fees and other hidden fees, and credit score risk. Luckily, better options exist.
Splitit is a responsible installment payment option with no application process, no interest, no late fees, and no credit score drama. Instead of opening a new credit line and decreasing their credit score, Splitit allows customers to make payments using their existing credit card. With Splitit, there is no need to enter any additional personal information, or be redirected to other pages, making it a less risky and more efficient payment option that everyone can use.
The Splitit possibility
Let’s take a moment and imagine what Jeremy’s checkout experience would have been with Splitit. Jeremy adds the watch to cart. He chooses Splitit as his payment method. He puts in his credit card information just as he would with any other purchase. With a calm smile on his face, Jeremy presses “confirm purchase”. He still only paid $100 at checkout! Jeremy has not taken out any new loans, and as for interest, fees and credit score risk… that’s not a Jeremy problem at all.