Splitit vs Affirm: Choosing the best BNPL solution for your business

The buy now, pay later market has transformed how customers shop and how merchants capture sales. With multiple BNPL providers available at checkout, understanding the differences between platforms is crucial for making the right choice for your business.

If you’re exploring Affirm alternatives or comparing Splitit vs Affirm, this comprehensive guide breaks down everything you need to know. We’ll examine the customer experience, merchant costs, and integration capabilities to help you determine which payment solution makes sense at your checkout.

How Splitit Works

Splitit is the only buy now, pay later platform that allows customers to leverage their existing credit card to fund their repayment plan. There’s no need to undergo a credit check, take out an additional line of financing, or navigate to a third-party loan site.  

Approval is based on the current balance available on their credit card. Splitit triggers a pre-authorized payment of the full purchase amount, but the customer won’t be charged upfront. Payments are deducted monthly according to the repayment schedule that best fits their budget.

There are no late fees, penalties, or additional interest (besides any existing fees that are charged by the credit card provider). Customers continue earning their credit card rewards and points while managing their budget effectively.

How Affirm Works

Affirm offers customers two distinct BNPL solutions: pay-in-4 or monthly installment loans. With pay-in-4, customers make 4 interest-free payments every 2 weeks, a straightforward option for smaller purchases.

Affirm’s monthly payment solution is set up as a point-of-sale financing provider, similar to a traditional loan or a credit card. Customers can apply to finance their purchase through Affirm once they reach the retailer’s checkout. 

The terms and conditions vary depending on the retailer and the applicant’s credit profile. Typically, repayment periods range between 3-12 months at up to 30% APR. In most cases, customers will also need to make a down payment upfront, which can be anywhere from 10%-50% of the total purchase price. 

Customers will need to undergo a soft credit check to be approved. If they’re looking for the monthly payment option and their application is successful, they’ll choose a repayment schedule with a fixed amount of interest. While Affirm doesn’t charge late fees, missed payments negatively impact credit scores and reduce chances of future approval.

Splitit vs Affirm: a comparison

For customers

For retailers

Splitit vs Affirm: Customer experience breakdown

Customer experience: Card-linked vs loan-based financing

Splitit’s card-linked approach

Splitit leverages the customer’s existing credit card, meaning approval depends solely on their available credit limit at purchase. Customers are automatically approved if they have sufficient credit for an authorized hold of the total purchase value.

This approach appeals to customers who:

• Don’t want additional loans appearing on their credit report

• Want to avoid interest charges on new financing

• Prefer using cards they already trust

• Value earning credit card rewards and purchase protections

• Prioritize privacy and don’t want to share additional personal data

Affirm loan-based model

Affirm requires customers to undergo a soft credit check and, if approved, creates a new line of credit. This loan appears on their credit profile and functions like a traditional bank loan.

This model works for customers who:

• Don’t have sufficient credit card limits available

• Prefer structured loan terms with fixed interest rates

• Are comfortable with credit checks and new account creation

• May benefit from 0% APR promotional offers (when available)

Interest rates and customer experience

Splitit: Zero additional interest

Splitit charges no fees or interest beyond what’s already associated with the customer’s credit card. If customers pay their credit card balance in full each month (as most prime credit customers do), they pay zero interest on their Splitit purchase.

Customers also continue earning credit card rewards: cash back, travel points, or other benefits, making their purchase even more valuable.

Affirm: Variable interest rates

Affirm charges interest on the total purchase price, which can be anywhere between 0% and 36% APR. They also have a referral program, which allows shoppers and new customers to save on a future purchase when a new Affirm customer uses a referral link. 

Approval rates and accessibility 

Splitit: 85% approval rate

Because Splitit uses existing credit card authorization, approval rates exceed 85%. There’s no underwriting, no credit decisions, and no application denials. If the customer has available credit, they’re approved instantly.

This high approval rate means fewer abandoned carts and more completed transactions at checkout.

Affirm: credit-dependent approval 

Affirm’s approval rates vary significantly based on customer credit profiles. Industry estimates suggest BNPL loan approval rates average 30-40%, meaning 60-70% of applicants may be declined.

Each decline represents a potential lost sale, particularly for customers who might have qualified using their existing credit cards.

Payment flexibility and terms

Splitit: Flexible monthly installments

Splitit offers monthly payments up to 12 months (depending on merchant settings), with customers choosing the repayment period that fits their budget. Payments automatically process on their credit card, requiring no additional payment setup or management.

Affirm: Pay-in-4 or extended loans

Affirm’s pay-in-4 option is structured across 4 payments every 2 weeks, suitable for smaller purchases but inflexible for larger ticket items.

For Affirm’s monthly payment option, repayment options are available up to 36 months. In most cases, customers will also have to make a down payment on their purchase (between 10% and 50% of the total price). They can make payments via debit card, checking account, or mail-in check. In some instances, they may be able to repay using a credit card.  

Splitit vs Affirm: Merchant experience breakdown

Finding a buy now, pay later solution that makes your customers happy is key – but it also has to align with your business goals and brand strategy. 

Branding and customer relationship control 

Splitit: Complete white-label integration 

Splitit operates as a completely white-label solution, meaning your brand remains front and center throughout the entire customer journey. There are no competing logos at checkout, no redirects to third-party sites, and no customer data sharing with external platforms.

Your customers see your brand, interact with your checkout, and remain within your ecosystem. This approach:

• Strengthens brand loyalty and recognition

• Prevents competitor marketing to your customers

• Maintains consistent user experience

• Keeps all customer data under your control
• Encourages repeat purchases and customer retention

Affirm: Co-branding checkout experience 

Affirm requires co-branding at checkout, with their logo and messaging appearing alongside yours. Customers are directed to an Affirm pop-up window where they complete their application and receive loan terms.

This co-branded experience means:

• Customers leave your site during the critical purchase moment
• Affirm builds direct relationships with your customers
• Customer data is shared with Affirm for marketing purposes
• Affirm may promote competing retailers to your customers through their marketplace
• Your brand competes for attention at the most crucial conversion point

Integration and technical implementation

Splitit: Seamless on-site integration 

Splitit integrates directly into your existing e-commerce platform with minimal technical lift. The platform works with:

• Shopify
• BigCommerce
• WooCommerce
• Magento
• Custom API integrations

Critically, Splitit’s checkout happens entirely on your site. Customers never leave your page, enter their credit card details within your branded checkout, and select their preferred installment plan

Affirm: Pop-up application process

When customers select Affirm, a pop-up window appears where they must:

• Enter personal information (name, address, date of birth, SSN)
• Wait for soft credit check processing
• Review loan terms and interest rates
• Accept terms and complete application
• Return to merchant checkout

This multi-step process introduces friction at the critical conversion moment. Each additional step creates an opportunity for customers to abandon their purchase, particularly if they’re declined or see higher-than-expected interest rates.

Choosing the right BNPL solution for your business 

The ideal BNPL strategy depends on your specific business needs, customer demographics, and growth objectives.

Choose Splitit When:

• Your average order value exceeds $500
• You target affluent customers with strong credit profiles
• Brand control and white-label experience are priorities
• You want to maximize approval rates and minimize cart abandonment
• Customer data ownership matters to your business model
• You’re focused on repeat purchases and lifetime customer value
• You need a solution that scales internationally
• Regulatory compliance and future-proofing concern you

Choose Affirm When:

• You primarily sell lower-ticket items (under $500)
• Your customer base includes subprime credit profiles
• You want to offer promotional 0% APR financing campaigns
• Co-branding doesn’t conflict with your brand strategy
• You’re comfortable sharing customer data and relationships

Consider who your target customers are today and reflect on how your payment solutions can satisfy their needs now and in the future. Shoppers already have new expectations for the payment options that are waiting in the checkout – and retailers that want to remain competitive need to show up with the best options. 

Getting started with Splitit 

If Splitit’s card-linked approach, white-label experience, and merchant-centric model align with your business goals, implementation is straightforward.

Splitit’s team provides:

• Free setup and integration support
• Technical documentation for all major platforms
• Customized pricing based on your business needs
• Ongoing optimization and performance consultation

Contact Splitit’s sales team to discuss how card-linked installments can drive higher conversion rates, increase average order value, and build lasting customer loyalty for your business.

Got more thinking to do? Explore Splitit vs Klarna and Splitit vs Sezzle.

Information correct at time of publishing, source: Affirm.com