When you provide multiple payment options for your customers, you give them more opportunities for purchasing something from your store. Splitit has added another option with an installment plan for debit cards so customers can split their purchase cost into three interest-free monthly payments.
The new feature extends the company’s monthly payment solution from Visa and Master Card credit cards to now include debit cards. The installment plan for the debit cards is limited to $400, which is split into three payments. This is still a great way to give customers what they want and provide businesses with more prospects for sales.
For small online and brick and mortar retailers, Splitit will increase revenue streams by making yet another payment option available for consumers across channels on their existing debit cards. This will lower cart abandonment and increase average order value (AOV) for retailers.
According to Gil Don, CEO and Co-Founder of Splitit, the goal is to give merchants the tools they need to empower their customers with more options. In the press release, Don said, this is especially the case with millennials, who are looking for solutions designed to make their purchase feasible and manage their cash flow.
Don added, “With millions of dollars’ worth of purchases at stake, retailers must ensure a seamless, efficient and customer-centered checkout process, and Splitit is the only payment method solution that truly does this – with no applications, no interest and instant approval. We are happy to be increasing consumer purchasing power, which translates to better outcomes for customers and retailers alike.”
What is Splitit?
Splitit lets customers make interest-free monthly payments on their purchase without additional registrations, applications, late fees or penalties, and instant approval. When a purchase is made, the customer can choose the number of months for the installment plan, with up to 12 months.
After Splitit authorizes the purchase, it reserves the customer’s available line of credit on their credit card. With each monthly payment, the company collects the installment amount and reissues the authorization request for the remaining balance—before the current authorization expires. The merchant gets paid in monthly installments, minus processing fee deductions.
The service is currently being used by 800 Internet and traditional merchants in 25 countries around the world.
The Move to Debit Cards
Debit card use is at record highs, which averaged 23.6 monthly transactions per month per active consumer in the US for 2016. The growth is being driven by millennials who are ditching their credit cards and opting for debit cards.
With those data points in mind, Splitit has decided to include debit cards as part of its installment plan for purchases. Merchants can implement the system right away and they can start accepting this payment system online, on mobile and in retail stores.
This is great because this means that you can start selling high ticket items and open them for layaways.
You are right.