Splitit vs Sezzle: Complete buy now pay later comparison
Buy now pay later platforms have become essential for modern e-commerce, with customers expecting flexible payment options at checkout. But with so many BNPL solutions available, choosing between providers like Splitit and Sezzle can be challenging for business owners.
This comprehensive BNPL comparison examines how credit card-based Splitit stacks up against pay-in-4 provider Sezzle. We’ll explore both platforms from customer and merchant perspectives, helping you determine which solution aligns best with your business goals and customer needs
How Splitit works: credit card-linked installments
Splitit is an installment-based payment platform that leverages a customer’s existing credit card. Unlike traditional buy now pay later platforms that require new financing, Splitit’s approval process is based solely on available credit card limits.
When customers choose Splitit, the full purchase amount is pre-authorized on their existing credit card, then paid off through scheduled monthly installments. This approach eliminates the need for credit checks, new loan applications, or additional financing arrangements.
The white-label integration means Splitit becomes part of your brand experience. Customers simply enter their credit card details and select their preferred payment schedule – no third-party redirects or complex application processes required.
How Sezzle works: traditional pay-in-4 model
Sezzle follows the standard pay-in-4 BNPL model, where customers make an initial payment followed by three additional payments over six weeks. Approval depends on soft credit checks and the customers previous Sezzle payment history.
Sezzle offers interest free payments, customers may face additional fees and penalties if a customer reschedules a payment multiple times, makes a late repayment, or uses a debit or credit card for payment periods 2-4. The platform maintains its own branding throughout the checkout process as a third-party payment option.
Splitit vs Sezzle: customer experience analysis
Choosing a BNPL payment solution is all about finding an option that makes sense for your business while delivering the best experience for your customers. It’s vital to understand how your customers will interact with it at every stage of their shopping experience.
Payment Flexibility and Terms
Splitit offers superior payment flexibility with installment plans ranging from 2 to 12 months, making it ideal for higher-value purchases. Customers can choose monthly payment schedules that fit their budgets.
Sezzle limits customers to four payments over six weeks, which works well for smaller purchases but may not suit larger transactions or customers who prefer longer repayment periods.
Fees and interest structure
Splitit charges no fees or interest to customers. They only pay standard credit card terms from their existing card provider while earning rewards and points on their purchases.
Sezzle doesn’t charge interest or upfront fees, but they do have some conditional fees as well as penalties (more on that below). They charge a “convenience fee” for installment payments made via debit or credit card after the first payment. The amount varies depending on where the customer lives. Customers can avoid this by switching their payment method to a bank account after the first payment.
Approval process and requirements
Splitit provides instant approval based on available credit card limits – no credit checks, applications, or new financing required. This results in higher approval rates, particularly for customers with established credit.
Sezzle requires soft credit checks and considers previous platform usage, potentially limiting approval rates for new users or those with limited credit history.
| SPLITIT | SEZZLE | |
| Credit check | No | Soft credit check for a portion of customers |
| Tied to credit rating | No | NoThey do have an opt-in service to report repayment history |
| Interest charges | No (besides interest that may already be charged by your credit card provider if you don’t pay your monthly bill) | No |
| Payment method | Credit card | Credit card or Debit cardBank account can be used for payments 2-4 |
| Credit card rewards captured | Yes | Yes, if the shopper pays with their credit card |
| Repayment triggering | Automatic | Automatic |
| Early repayment option | Yes (no fees) | Yes – pay off each installment early, they can also pay off multiple payments together |
| Number of Installments | Flexible 3-36 months – Merchant chooses (equal monthly payments) | Pay in 4: 4 payments every 2 weeks (longer term payment plans are available through their partnerships) |
| Associated fees | None | Yes $5 for rescheduling payment more than once $10 for failed payment A disclosed ‘convenience fee’ – applied if debit or credit card is used for a scheduled payment |
| Spending limit | Dependent on credit card limit and availability | Minimum of $35 (No minimum in Canada)Maximum based on individual profile and purchase history Maximum $4,000/day limit for some users |
Splitit vs Sezzle: Retail experience breakdown
As well as establishing what works well for your customers, it’s important that your BNPL solution integrates seamlessly into your business operations and overall brand strategy.
Merchant payment periods
Splitit’s merchant payment scheduling depends on what the best package is for your specific business. Depending on the plan, retailers may receive payment upfront or in tandem with the customer repayment plan.
Sezzle pays all merchants upfront and transfers funds into the merchant’s Sezzle account when orders are placed. It usually takes about 3 business days for funds to arrive in the merchant’s bank account.
Site integration and branding
Splitit’s white-label approach means the payment solution appears as part of your brand experience. Customers remain on your site throughout the checkout process, maintaining brand continuity and reducing abandonment rates. Splitit can also be integrated with all major platforms, including Shopify and BigCommerce, with options for custom integration.
Sezzle maintains its own branding and requires customers to interact with pop-up windows and third-party interfaces. From there, they’ll enter their information so they can undergo a credit check before receiving a decision on their financing.
| SPLITIT | SEZZLE | |
| Payout terms | Flexible options – upfront payment options or in line with customer repayment | Retailer is paid upfront in full, often on the next business day |
| Purchase Limit | Can be set by merchant, also dependent on shoppers credit card limit | Based on customer profile and merchant limits |
| Obtaining Customer Data | No – does not retain data or re-market to a merchant’s customer base | No – do not use customer data for re-marketing purposes |
| In-Store Solution | Yes | Yes |
| International Capabilities | Global | USA, Canada, Germany, France, Austria, Belgium, UK, Netherlands, Spain, Italy |
| Key Partnerships | Shopify, Salesforce Commerce Cloud, Wix, Magento, BigCommerce, and WooCommerce | Shopify, Shopify Plus, WooCommerce, BigCommerce, Salesforce Commerce Cloud |
| Site integration | Integrated into retailer’s checkout as white-label solution or Splitit brand | Integrated into retailer’s checkout under Sezzle brand |
Sezzle alternatives: why choose Splitit
The best BNPL platform gives customers the financial flexibility they’re looking for in a format that is easy to use. With Splitit, customers don’t need to add to their credit profile or take out a new line of financing.
They can leverage the existing power of their credit card to make large purchases without needing to pay fees or additional interest. It’s a flexible solution that makes it easy to budget and control spending.
When evaluating Sezzle alternatives, consider these Splitit advantages:
Higher average order values
Splitit customers typically spend over $1,000 per transaction, compared to Sezzle’s focus on smaller, short-term purchases. This makes Splitit ideal for businesses selling higher-value items or services.
Better customer retention
The white-label experience keeps customers within your brand ecosystem, leading to improved loyalty and repeat purchases
Global reach and scalability
Splitit operates in over 150 countries with multi-currency support, making it ideal for businesses with international customers or expansion plans.
Regulatory compliance
As a card-linked solution, Splitit operates under existing credit card regulations, providing stability as BNPL regulations evolve globally.
Buy now pay later comparison: which platform wins?
The best buy now pay later platform depends on your business model and customer base:
Choose Splitit if:
- You sell higher-value products or services
- Your customers have established credit profiles
- Brand control and white-label experience matter
- You want longer repayment terms and flexibility
- Global expansion is part of your strategy
Choose Sezzle if:
- You primarily sell lower-value items
- Your customers prefer short-term payment commitments
- You’re comfortable with third-party branding
- A pay-in-4 structure meets your needs
Get in touch with our team to learn about how to get started with Splitit.
Got more thinking to do? Explore Splitit vs Klarna, Splitit vs Affirm and Splitit vs Afterpay.
Information correct at time of publishing, source: sezzle.com
