If you’re like most people, you look at prices before purchasing. Sometimes money can be tight and higher priced items can scare you so you decide not to make a purchase. You don’t necessarily want to do layaway because you probably would like to get the product now.
With Splitit, you can divide your payment into monthly installments and still get the item from the store that same day with no waiting period. CEO and Co-Founder of Splitit, Gil Don, spoke with RewardExpert about why Splitit is a great choice for both businesses and consumers.
How Splitit Works
The company is based in Israel and was created by Gil Don and Alon Feit. They recognized the fact that many people struggle financially when it comes to purchasing high-end items or attending many high-profile events in the same month, and they wanted to figure out a way to help.
Don used the example of weddings. “If you have three weddings in a month, you usually bring money, and that could be heavy on your wallet. So we came up with an idea of an installment plan with credit cards.”
He also added that in Israel when you go to pay for something it is common to pay in installments, and that cashiers will often ask if you want to ‘split it.’ It was there that the name and the company was born.
The way it works is that it enables consumers to pay for their purchases either in-store or online with their existing credit cards and divide the total cost of the item across as many interest-free payments as they choose. Don said one of the unique things about Splitit is that they don’t do a credit check on the card or the customer.
“When you decide to buy with Splitit, you just need available credit on your card. If you have credit on your card, that’s it. There’s no need to register or to apply for another credit card. Our solution is only based on your existing credit card.”
Splitit vs. Layaway
Another unique feature of Splitit is that is varies significantly from the layaway process. “With layaway, you get your product after you finish paying,” explained Don. “In our case, with Splitit, you get your item now and then you pay every month. You receive your product immediately, but we will not charge you any late fees because it’s based on your credit card, and we will not charge you any interest.”
He said that it’s a smart use of your credit line. And recently the company launched a new option of allowing individuals to split their payment using more than one credit card. “There are many exciting things on the horizon,” said Don.
How Splitit Boosts Sales for Businesses
While Splitit can significantly help out consumers with their payment plans, it is also beneficial to merchants. “When you decide to integrate Splitit and you start offering the solution, there are three parameters where you will see improvement,” stated Don. He described the following:
- Conversation Rate – There is an average of a 10 to 15 percent increase in conversion with online retailers when they promote Splitit the right way on their product page.
- Average Order Value – One merchant is selling eyeglasses online, and their average before Splitit was $85 and afterwards it went to $220. “It more than doubled the average, which is amazing,” described Don.
- Card Abandonment Decrease – There is a decrease in card abandonment when a merchant offers Splitit at the checkout.
A Simple Solution for All
Today, over 800 merchants have registered for Splitit, and Don said that his is the only worldwide company that offers this solution. “We’re the only global company that does what we do.” Along with installments, merchants are also given the ability to sell globally with Splitit.
Getting started is easy, and installation takes less than a few hours. Don explained that all it takes is a simple download and one phone call and you can get your business up and running. For more information, visit Splitit.com.