Business Tips

Splitit vs Affirm: What are the differences?

Last updated May 2022

It’s clear that buy now, pay later payment solutions are here to stay – customers like having flexible payment options (and retailers like it when customers are happy). 

With this rise of popularity, there’s an increase of buy now, pay later providers popping up at the checkout. And everyone does things a little differently.

Here, we’re looking at the key differences between Affirm and Splitit. Learn about the customer and retailer experience and find out which option (or whether having both options) is best for your business. 

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 will trigger a pre-authorized payment of the full purchase amount, but the customer won’t be charged upfront. Payments will be deducted on a monthly basis in line with a 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).

How Affirm Works

With Affirm, customers have the choice between two BNPL solutions: pay-in-4 or monthly payments. With pay-in-4, customers make 4 interest-free payments every 2 weeks. 

Affirm’s monthly payment solution is set up as a point-of-sale financing provider, similar to a 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. They won’t be charged any late payment fees, but late or missed payments can affect their credit score. 

Splitit vs Affirm at a glance

For customers

Credit check No Yes (soft credit check)
Tied to credit rating No Yes – loan amount and repayment behaviour affect credit score
Interest charges  No (besides interest that may already be charged by your credit card provider if you don’t pay your monthly bill) Monthly payment option: Yes – up to 30% APR

Pay-in-4 option: No interest charges

Payment method Credit card Debit card, checking account, or mail-in check

Some purchases may be eligible for repayment via credit card

Credit card rewards captured Yes Not usually – depends on the card provider
Repayment triggering Automatic Automatic or manual
Early repayment option Yes (no fees) Yes (no fees)
Number of Installments Flexible 2-24 months (equal monthly payments) 3, 6, or 12 months
Associated fees None  Up to 30% interest
Spending limit Dependent on credit card limit and availability Depends on credit profile

For retailers

White-label offering Yes No
Fees for retailers 1.5%-4% per transaction, plus a flat fee Varies – generally about 5.99% per transaction, plus $0.30 flat fee
Payout terms Flexible options – upfront payment options or in line with customer repayment Upfront payment within 1-3 business days of purchase
Purchase Limit Set by merchant  Monthly payment option: Up to $17,500
Obtaining Customer Data No – does not retain data or remarket to a merchant’s customer base Yes (via a virtual card, a debit card and a savings account)
In-Store Solution Yes Yes
International Capabilities  Global USA, Canada, Australia
Key Partnerships Shopify, SFCC, Wix, Magento, BigCommerce, and WooCommerce Shopify, WooCommerce, SFCC, api, BigCommerce, Wix
Site integration Seamless (integrated into retailer’s checkout) Integrated into retailer checkout flow


A closer look at Splitit vs Affirm

Having the best payment solution is all about finding the balance between what’s best for your customers and your business needs. There are a few key factors to consider when choosing a buy now, pay later platform.

Splitit vs Affirm: Customer experience breakdown

Both Splitit and Affirm cater to different customer needs and expectations. 

Existing card based or POS finance based

Splitit leverages the customer’s existing credit card, which means approval is based on their card limit at the time of purchase. They’ll automatically be approved if they have enough space on their card for an authorized hold of the total purchase value (as long as it’s within the spending limit set by the retailer).

This is ideal for people who don’t want to take out an additional line of credit and pay interest on a new loan, or those who don’t want to pay interest on their credit card by charging the total order value upfront.   

With Affirm, customers undergo a soft credit check first to establish whether they qualify for a loan. If approved, they’ll take out a new line of credit through Affirm. This will be added to their credit profile and operate in a similar way to a traditional bank loan or credit card. 

Fees and interest

Splitit is free for customers to use – there are no upfront fees or added interest, which means shoppers will only ever pay fees or interest already associated with their credit card. They can also benefit from credit card rewards and points. 

Affirm charges interest on the total purchase price, which can be anywhere between 0% and 30% 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. 


Splitit and Affirm don’t charge late payment fees. In Splitit’s case, if a customer misses a payment, the entire remaining pre-authorized balance will be processed after 7 days. 

In Affirm’s case, late or missed payments can have a negative impact on the customer’s credit score and reduce the chances of being approved for future financing. 

Payment periods

Splitit allows customers to choose a flexible repayment plan that suits them. They can make monthly payments over a set time (up to 24 months, depending on the retailer’s terms) which will automatically be deducted from their credit card. 

Affirm’s pay-in-4 option is structured across 4 payments every 2 weeks. 

For Affirm’s monthly payment option, repayment schedules are structured over 3, 6, or 12 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: Retail 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. 

Cost of use

Splitit offers different  payment packages to suit different business needs and goals. Each package includes free set-up and integration and guaranteed full transaction amount:

  • Standard: from 1.5% + $1.50 per installment
  • Funded: from 2.5% per installment

Affirm’s fees vary depending on the retailer, the scope of service, and the business risk factor. Generally, retailers can expect to pay around 5.99% plus a flat fee of $0.30 per transaction. However, this will change depending on the size and type of business. 

Merchant payment periods

With Splitit, retailers will either receive payment upfront or in line with the customer repayment plan, depending on the package that best suits their business needs. 

With Affirm, retailers can expect to receive payment upfront within 1-3 business days. 

Site integration

Splitit offers a white-label solution that can be seamlessly integrated into your customer experience as part of your own brand. It works with all leading e-commerce platforms, including Shopify and BigCommerce, with options for custom integration

Unlike many buy now, pay later solutions, with Splitit there’s no need for customers to navigate away from your checkout onto a third-party platform and fill out a long application – it all happens right there, on your site. 

If customers choose Affirm, they’ll see a pop-up window where they’ll enter their personal details and undergo a soft credit check. If approved, they’ll choose a repayment period and see the total interest they’ll have to pay that corresponds with their line of credit. 

Splitit vs Affirm: Which is better?

Of course we’re a little biased – and for good reason. For us, it’s all about what your customers are looking for. Splitit doesn’t charge late fees or additional interest. It enables people to make larger purchases in a flexible format, leveraging their existing credit to create a budget-friendly, repayment plan.  

From a retailer perspective, Splitit is offers a white-label solution that can become a seamless part of your checkout experience – and your brand. All these factors combined can help to drive an AOV of $1,000+ and improve conversion rate by 30%. With an easy-to-access global offering, Splitit is also designed to scale alongside your business growth.

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. 

Get in touch with our team to learn about how Splitit can benefit your customers and support your goals. 

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


Information correct at time of publishing, source:

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