Splitit vs Sezzle

Last updated October 2022

BNPL is an option that most customers expect to find at the checkout today – but which platform is the best for your audience and your business?

Once you start looking around, it can be overwhelming to decide which buy now, pay later platform fits your customer’s needs while positively impacting your brand.

Here, we’re taking a close look at how existing-card based Splitit compares to pay-in-4 Sezzle. Read on to learn about how Splitit and Sezzle work from both a customer and retailer perspective, so you can start to strategize about which solution makes sense for your business.


How Splitit works

Splitit is an installment-based payment platform that leverages a customer’s existing credit card. Approval is based on the available balance that’s on their card at the time of purchase.

Customers use their credit card to secure a pre-authorized payment for their order total and then pay off this amount in a series of installments. The pre-authorized total reduces with every monthly payment, which means they can avoid paying interest on a big purchase upfront.

With Splitit, customers avoid credit checks and new financing – everything they need is already in their wallet. They benefit from a flexible repayment schedule that fits their budget without the need to pay additional interest, fees, or penalties.

From a usability perspective, Splitit is a white-label solution that’s integrated into the merchant’s existing payment flow . It becomes part of the retailer’s brand, with no application process and no need to leave the checkout to navigate to a third-party platform. The consumer just enters their credit card details and chooses the number of monthly payments.


How Sezzle works

Sezzle is a basic pay-in-4 BNPL platform – customers make an initial payment on their debit or credit card and follow up with 3 additional payments spread over 6 weeks. Financing approval is based on a soft credit check and customers’ past history with Sezzle.

Sezzle is interest-free, with the potential for 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.

From a usability perspective, Sezzle maintains the Sezzle branding across the retailer’s website and appears as a third-party payment option.

Splitit vs Sezzle at a glance


For customers

Credit check No Soft credit check for a portion of customers
Tied to credit rating No No

They 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 card

Bank 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


For retailers

Fees for retailers 1.5%-6.5% per transaction, plus a flat fee Standard rate is 6.1% per transaction + $0.30 fixed fee

Rate may be higher, or lower, depending on the merchant

Merchant may be charged if they don’t meet the minimum monthly sales volume with 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


A closer look at Splitit vs Sezzle

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. Here, we get into the details and break down the differences and similarities between Splitit and Sezzle.


Splitit vs Sezzle: Customer experience breakdown

Any BNPL solution is only as good as its customer journey. When considering payment solutions, it’s vital to understand how your customers will interact with it at every stage of their shopping experience.


Existing card based or finance based

With Splitit, customers don’t need to take out additional credit or apply for external financing. All they need is enough space on their credit card, which they’ll use to fund their installment-payment plan.

They’ll automatically be approved and the total purchase price will be placed onto their card as an authorized hold. It’s a great option for customers who don’t want to apply for additional credit, run a credit check, or pay a lump sum onto their credit card.

Sezzle relies on the customer’s financial history and past behaviour using the platform. Customers will undergo a soft credit check, which will determine whether they’re approved and, if so, what their purchase limit is.

From there, they’ll pay the first of four installments on their debit card or credit card. After that, they have the option to connect a bank account for the remaining three payments or continue to use their debit or credit card.


Fees and interest

Splitit is completely free for customers to use – they don’t pay any fees or interest. Everything is conducted through their existing credit card, so they’ll only pay interest or fees that relate to their card provider. They also benefit from all credit card rewards and points.

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.



Splitit doesn’t charge any penalties related to late payments or rescheduling. In the event that a customer misses a payment, their remaining pre-authorized balance will be processed after 7 days.

With Sezzle, customers are charged $5 for rescheduling their payment plan after the first time and $10 for late or missed payments.


Payment periods

Splitit offers a variety of flexible repayment options, which allows customers to choose a flexible plan that fits their budget. This breaks out into monthly payments over a set time (up to 36 months, depending on the retailer’s terms). The longer payment period makes Splitit ideally suited for larger purchases with more affordable monthly repayment options.

The total purchase price will be placed as a pre-authorized hold on their card, which will be reduced as each monthly payment is automatically charged.

With Sezzle, customers are limited to 4 repayments spread across 6 weeks – they’ll make their first payment upfront, with 3 subsequent payments taken every 2 weeks after that. (longer term payment plans are available through their partnerships)


Splitit vs Sezzle: Retail experience breakdown

As well as establishing what works well for your customers, it’s important that your BNPL solution factors seamlessly into your business operations and overall brand strategy.


Cost of use

Splitit is a flexible solution for retailers, with payment packages that include free set-up and integration and guaranteed full transaction amount:

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

Sezzle’s standard fee is 6.1% + $0.30 per transaction. This may be higher, or lower, depending on the retailer and business type.  


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

Splitit is a white-label solution, which means retailers can absorb the power of BNPL as part of their own brand and customer journey. The Splitit checkout experience is designed to be completely seamless – customers enter their information quickly without leaving the retailer’s site. There’s no need for third-party navigation or long, complicated forms.

Splitit can be integrated with all major platforms, including Shopify and BigCommerce, with options for custom integration.

Sezzle maintains the Sezzle branding across the user journey. Customers who choose to pay with Sezzle will be met with a pop-up window. From there, they’ll enter their information so they can undergo a credit check before receiving a decision on their financing.


Splitit vs Sezzle: Which is better?

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.

Splitit’s white-label solution also allows you to differentiate your brand from the competition. You can integrate BNPL as a holistic solution, which makes for a clean and simple site experience. This minimizes friction at the checkout and helps to cultivate a positive customer experience – on average, this results in AOV of $1,000+ and an improved conversion rate by 30%.

With the opportunity to scale globally, Splitit is set up to meet your customers’ needs today and in the roadmap ahead.

Get in touch with our team to learn about how to get started with Splitit.  


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