COVID-19 has turned the world inside out, creating new patterns in our lifestyles and spending habits. As consumers struggle to adapt to the new environment, they’re rediscovering the advantages of Splitit’s flexible payment option for their purchases. The card-based installment solution provides a set of popular benefits that COVID-weary shoppers appreciate more than ever.
One young engineer in New York City was determined to carry on with plans for his wedding engagement, despite the pressures of the pandemic. First, though, he needed to purchase a diamond ring, to have it ready for the right moment. But he was cautious about undertaking a significant expense during such uncertain times.
He analyzed his options carefully: to pay in one lump sum with his credit card, to use the retailer’s traditional in-house financing, or to pay by installment, making multiple payments with Splitit. This financially savvy bridegroom decided on the third solution. Although he could in fact afford the ring now, Splitit would provide an extra layer of reassurance in case his finances later became more challenging.
Even though I can afford to buy her a ring, I think being able to split it (just like the company name ‘Splitit’) gives me a little more buffer just in case something happens during these uncertain times.”
Splitit research reports that 55% of shoppers consider the company’spayment structure, free of added fees or interest, its most appealing benefit — all using their existing card accounts. That advantage is unique in the buy-now-pay-later market. When the shopper provides their credit card at checkout, they’re only charged for the first installment, with the remaining balance held on the card until the final payment. The beauty of the system is that extra expenses are avoided and there are no late fees. Splitit also allows the option to pay off the balance early for those that choose to do so.
Easy and Convenient
COVID-19 has generated a host of new stresses and complications, and it has taken us all months to come to terms with practical methods of operating in daily life. Right now, consumers are flocking to any services that make their lives simpler to run.
Splitit is a breeze to use. Since purchases are charged to an existing Visa or Mastercard, there’s no need to apply for a new card, which saves the hassle of credit checks and application forms. It means no new items on shoppers’ credit reports and no additional payments to make each month. Transactions are approved when the credit card is accepted, based on the individual’s available credit line.
When paying with Splitit, many shoppers find higher-end items more affordable or choose to add accessories to complement their purchases. It’s a welcome convenience to be able to make a more expensive purchase without taking on new credit or filling out more online forms.
Besides, the fewer credit applications buyers make, the less exposed they’ll be to sharing their private and sensitive data. By relying on an existing card, customers can leverage existing security protections.
A seamless payment option is a priority for certain buyers, such as an Australian real estate agent whose real passions are cycling and triathlons. When it was time to upgrade his road bike, he gravitated to Splitit, because he liked the uncomplicated process. Although his new Canyon Aeroad CF SL 8.0 model represented a big-ticket item for him, dividing up his payments helped. He also found it a useful system for managing cash flow, with the automatic monthly deductions from his credit card. When he decided to make a few extra payments, he was pleased by how responsive and available the Splitit team was in meeting his needs.
“Splitit,” he explains, “is good for managing cash flow and, while I have used a lot of buy now, pay later (BNPL) options in the past, Splitit is better.”
With Splitit, the checkout process is straightforward and intuitive to execute. Every online consumer is all-too-familiar with the frustrations of an awkward or overly-complex checkout and has probably succumbed to the temptation to ditch their online shopping carts before the final purchase goes through. Research has shown that 7 in 10 shoppers just give up if checkouts become cumbersome, while 55% of them never return to that particular online site.
Sometimes consumers have to splash out, whether for an urgent product or service, or even an indulgence to boost their spirits. Popular larger Splitit purchases range from furniture, like mattresses, bed frames and sofas, to jewelry, wearable wellbeing devices, and geodesic dome greenhouse kits. Excited shoppers are often glad to receive an item immediately, without having to wait patiently over months of saving up.
Services, too, can blow a hole in the bank balance. For example, a Connecticut dog lover needed vet insurance for her beagle puppy which had contracted kennel cough. VitusPay, an installment option powered by Splitit, came to the rescue, allowing the owner to meet this unexpected expense without sacrificing her strict budget.
“Splitit was so simple to use and we would definitely recommend their payment option to all our friends and family.”
For those big-ticket outlays, charges can be divided into installments (typically up to 12 depending on the policies of the individual merchant). The way it works is that when the shopper completes the purchase, Splitit charges for the first installment and simultaneously takes an authorization for the entire outstanding amount, and it’s used to guarantee future installment payments. The advantage of that process is that shoppers can make pricier purchases while keeping a lid on their credit utilization (the percentage of their credit limit) and card payments. The authorization “hold” subsequently reduces with each payment.
As further enticement, shoppers can still use their current rewards programs on their cards. Those who’ve been collecting points or airline miles can carry on working towards their dream vacation or a celebration weekend.
Another benefit is that Splitit offers a way to help shoppers build or repair their past credit history. The number of accounts a customer holds, their payment history and any recent credit checks, and the credit utilization percentage are all key elements that go into a credit score. Splitit can help boost one’s profile on all those fronts. As we mentioned, it adds no new lines and doesn’t check credit reports. It also makes it easier all around to pay off the balance with the more manageable bite-sized installments.
Last but not least, Splitit keeps shoppers on track with managing their personal budgets more efficiently. As we emerge from pandemic restrictions, we’re all hoping for an economic recovery with healthier spending levels and more opportunities to indulge ourselves and our loved ones. There’s no better time for a financial Spring cleaning and getting spending discipline back in order. By using Splitit, shoppers have a great tool for maintaining financial responsibility — without having to make too many compromises.