Splitit Launches Shopify Embedded Installment App to Transform E-commerce Payments.

Table of Contents

1. Key Highlights
2. Introduction
3. A New Player in the Buy Now, Pay Later (BNPL) Sphere
4. The Cart Abandonment Crisis
5. Empowering Merchants with Control
6. A Growing Market for E-commerce Solutions
7. Security and Risk Considerations
8. Implications for the Future of E-commerce
9. Conclusion
10. FAQ

Key Highlights

• Splitit has introduced its new embedded installment app, Splitit Card Instalments, designed exclusively for Shopify merchants.
• The app allows customers to use their existing credit cards for installment payments without requiring loan approvals or additional applications.
• By streamlining the payment process within the Shopify ecosystem, it aims to reduce cart abandonment and enhance the overall shopping experience.

Introduction

In a world where the average online shopper is just a click away from abandoning their cart, the dynamics of e-commerce payments are undergoing a seismic shift. A staggering 22% of online shoppers abandon their purchases due to complicated checkout processes. To address this issue, Splitit, a trailblazer in the payment solutions industry, has launched its embedded Shopify app, Splitit Card Instalments. This innovative tool not only aims to improve conversion rates for merchants but also promises to enhance customer satisfaction by offering a seamless, one-click installment payment experience. This article delves deeper into the implications of this new offering, its potential to reshape e-commerce, and what it means for both merchants and consumers.

A New Player in the Buy Now, Pay Later (BNPL) Sphere

Splitit is redefining the way consumers engage with payment plans. Traditionally, Buy Now, Pay Later (BNPL) providers have required consumers to take on new loans at checkout. Splitit flips this notion on its head by allowing customers to utilize their existing credit cards to pay for items in manageable installments. This innovation removes the friction typically associated with traditional financing methods and opens doors for merchants to access a broader customer base.

How Does It Work?

When a customer decides to make a purchase, they can opt to split the payment into pre-determined installments using their existing credit card at checkout. This integration streamlines the process by avoiding redirection to third-party applications or services, which can often lead to cart abandonment. The simplicity of a one-click installment payment experience could very well be the solution to lingering issues of conversion in e-commerce.

The Cart Abandonment Crisis

Cart abandonment is a critical challenge for online retailers, costing businesses billions each year. Research shows that making the payment process simpler can significantly reduce this phenomenon. The introduction of Splitit's embedded app tackles the complexity typically associated with payment options:

• Pre-existing Credit Options: Allows customers to break down their purchases using already available credit.
• Seamless Integration: By embedding directly into the Shopify checkout experience, the app diminishes the sense of friction during transactions.
• Cohesive Brand Experience: Merchants maintain their individual brand identity without external interference from third-party providers.

With these strategies, Splitit aims to convert potential abandonments into completed sales.

Empowering Merchants with Control

The Splitit Card Instalments app is not just beneficial for consumers; it is designed with merchants in mind. The white-label solution provides merchants with full branding control over the payment experience. This is a significant advantage as it allows businesses to strengthen customer relationships while positioning themselves more favorably in the crowded e-commerce market.

Benefits to Merchants:

• Increased Average Order Values: The ability to offer installment payments can encourage consumers to purchase higher-value items, thereby increasing overall sales.
• Local Payment Options: With capabilities that cater to over 100 countries, merchants can provide localized payment solutions that resonate with diverse customer bases.
• Consumer Trust and Retention: Offering an easy and recognizable payment solution can enhance consumer trust, leading to repeat purchases.

A Growing Market for E-commerce Solutions

The rise of e-commerce has led to a surge in demand for flexible payment options. As the digital commerce landscape continues to grow, the need for efficient, user-friendly payment solutions has never been more pronounced. According to industry reports, BNPL sales are projected to exceed $990 billion by 2025, with services like Splitit poised to capture significant market share by targeting friction points in the purchase process.

Case Study: Success Stories with BNPL Solutions

Many companies have experienced notable success when integrating BNPL solutions. For instance, retailers like ASOS and Urban Outfitters have reported substantial increases in conversion rates and average order values after implementing similar payment options. Such examples underline the potential success Splitit could replicate among Shopify merchants.

Security and Risk Considerations

One of the concerns surrounding BNPL services is the potential for consumers to overspend or accrue debt they cannot manage. Splitit mitigates this concern by requiring customers to use their existing credit cards, which tends to be a more responsible financial decision. Furthermore, their model encourages responsible spending habits because consumers must plan to pay using their already available credit.

Customer Data Protection

With rising concerns about data privacy, Splitit addresses the need for security by ensuring that merchants maintain full control over their customer data. This distinguishes them from traditional BNPL providers, making the app a secure option for shoppers wary of sharing sensitive financial information with third parties.

Implications for the Future of E-commerce

As more shoppers move online and demand flexibility from payment solutions grows, Splitit's embedded Shopify app signals a significant evolution in how merchants can approach sales. By offering a compelling reason for consumers to complete their purchases, this embedded solution not only assists in completing sales but opens avenues for new business growth and customer loyalty.

Potential Developments

As we look ahead, the implications of Splitit’s embedded app are likely to extend beyond Shopify alone. Other e-commerce platforms may begin to explore similar solutions to stay competitive. Additionally, advancements in technology and consumer behavior patterns may spur further innovations in the BNPL landscape.

Conclusion

Splitit's launch of its embedded installment app for Shopify merchants marks an exciting advancement in the realm of e-commerce payments. By providing a seamless and user-friendly alternative to traditional financing options, Splitit positions itself as a pivotal player in shaping the future of online shopping. As merchants embracing this technology seek to improve their conversion rates, average order values, and customer satisfaction levels, they stand to reap the benefits of enhanced brand loyalty and retention in an increasingly competitive marketplace.

FAQ

What is the Splitit Card Instalments app?

The Splitit Card Instalments app is a payment solution integrated within Shopify that allows customers to split purchases into installments using their existing credit cards.

How does the app differ from traditional BNPL services?

Unlike traditional BNPL providers that require new loans, Splitit allows customers to utilize their existing credit, which eliminates the need for extra loans and potential debt.

What are the benefits for Shopify merchants using this app?

Merchants can enjoy increased conversion rates, the ability to offer localized payment solutions, and full control over customer relationships and brand identities due to the app's white-label design.

Can the app be used globally?

Yes, the Splitit app supports customers in over 100 countries and regions, allowing merchants to cater to a diverse customer base.

How does Splitit ensure customer data security?

Splitit maintains a white-label approach, which enables merchants to handle customer data directly, significantly minimizing the risk associated with third-party data exposure.

What impact does Splitit have on cart abandonment rates?

By simplifying the payment process and reducing the friction associated with payment options, Splitit aims to decrease cart abandonment rates, which currently affect around 22% of online buyers.