Splitit and Visa have partnered to offer merchants a buy now, pay later (BNPL) solution.
The two companies have signed a two-year deal in which Splitit’s installments-as-a-service offering is combined with Visa Instalments to form a BNPL solution that will be piloted in select markets during the second half of the year, The Market Herald reported Friday (May 5).
The new BNPL solution will be embedded within the merchants’ existing credit card process, allowing them to offer the installment service to their customers, according to the report.
“We are excited to be partnering with Visa to pilot a new instalment solution, which enables acquirers and merchants to access the powerful benefits of Visa Instalments coupled with Splitit’s universal credit card acceptance in a single API [application programming interface] integration and solution,” Splitit CEO and Managing Director Nandan Sheth said in the report. “By providing customers with an optimized, simplified installment experience, merchants can enjoy improved sales conversion and increased order size.”
PYMNTS research has found that more businesses are realizing the potential to modernize and drive increased customer loyalty with a digital-driven approach.
Offering preferred payment options can make a substantial difference in customer satisfaction, as that metric fell 10% among consumers who wanted flexible payment options but shopped at a merchant that did not provide them, according to “Streamlining Checkout to Boost Conversion and Loyalty,” the March edition of the “Buy Now, Pay Later Tracker®,” a PYMNTS and Splitit collaboration.
The report also found that 56% of consumers were highly interested in using BNPL options at luxury and specialty online stores.
The news of Splitit’s partnership with Visa comes about two weeks after Splitit unveiled a “super-fast” payment experience called SplititExpress that lets BNPL customers check out in under two seconds while supporting payments via Apple Pay and Google Pay.
About a month before that, on March 23, Splitit launched an installments-as-a-service integration with the SAP Commerce Cloud, providing SAP Commerce Cloud merchants with a faster path to bringing the service to their customers.
The product powers BNPL offerings for enterprises that serve B2B, B2C and B2B2C markets.
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