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The buy now, pay later (BNPL) provider announced a multiyear deal with Mastercard to expand the reach of its solutions. Splitit will leverage Mastercard’s network and technology to enable merchants to offer its solutions both in-store and online, and they’ll develop new installment products and related offerings together. The firms plan to pilot the partnership in the UK, Canada, and Australia, and intend to expand their collaboration globally, Splitit CEO Brad Paterson told Business Insider Intelligence.
Working together will bolster Splitit’s acceptance and Mastercard’s offerings to merchants and cardholders:
Mastercard should give Splitit’s solutions tremendous reach, building on the firm’s existing efforts to boost its distribution. Mastercard’s status as one of the leading card networks globally means it’s accepted by millions of merchants around the world, both online and in-store. Through this partnership, all of those merchants may gain the option to offer Splitit’s solutions, which could expose more consumers to its products and make it one of the best-known players in the BNPL industry. In addition to this collaboration, Splitit has partnered with Visa, Stripe, Shopify, and Magento as a part of its efforts to be available wherever consumers shop, Paterson said.
By working with Splitit, Mastercard can deepen its involvement in the BNPL space and boost its appeal to merchants. Mastercard acquired Vyze, a fintech that uses an API to enable merchants to offer credit options to customers, in 2019, and working with Splitit continues its efforts to connect merchants to BNPL products. Giving merchants access to BNPL offerings from firms like Splitit could push more sellers to use Mastercard’s solutions because of consumers’ interest in such products and their potential to boost conversion rates and average order values. If Mastercard’s merchants and their customers show an appetite for Splitit’s solutions, the card network might even decide to team up with other BNPL firms in the future to give merchants and consumers more financing choices at checkout.
This partnership comes at an important time for Splitit, as BNPL firms’ performances are booming due to the coronavirus pandemic and competition is heating up in the space. Splitit brought in $25.8 million in merchant sales volume (MSV) in May, its largest monthly MSV ever, while competitors like Klarna and Afterpay have seen their merchant bases and sales volume surge as of late too.
That’s because the pandemic may be boosting consumers’ interest in flexible payment options as they deal with issues like unemployment, and the crisis may have driven more merchants …read more
Source:: Businessinsider – Finance
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