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  • Writer's pictureDonnelle Brooks

Everything you need to know about Splitit: a review

As the e-commerce industry continues to evolve, businesses are constantly seeking innovative payment solutions to enhance customer experience and boost sales. has emerged as a popular choice, offering a "buy now, pay later" approach that allows customers to split their purchases into interest-free installments. In this SEO-optimized article, we will delve into the pros and cons of to help businesses make an informed decision about incorporating this payment solution into their online stores.


What is Splitit?

Splitit is a fintech company that provides a solution for "buy now, pay later" (BNPL) services. Splitit allows consumers to make purchases with their existing credit cards and pay for them over time through equal monthly installment payments. Unlike some other BNPL services, Splitit doesn't require consumers to apply for a new line of credit or undergo a credit check.

The way Splitit works is by leveraging the available credit on the customer's existing credit card. The total purchase amount is pre-authorized on the credit card, and then each month, a portion of the total amount is charged to the card until the full amount is paid off.

How does Splitit work?

Splitit is a "buy now, pay later" (BNPL) solution that allows consumers to make purchases and pay for them over time through equal monthly installment payments. Here's a general overview of how Splitit typically works:

1. Online Purchase

When a customer is making an online purchase and chooses Splitit as the payment option, they will be prompted to enter their credit card details, similar to a regular online transaction.

2. Authorization

Splitit checks the customer's available credit on their existing credit card. Rather than providing a new line of credit, Splitit leverages the customer's existing credit card.

3. Payment Plan

The total purchase amount is pre-authorized on the customer's credit card, but the full amount is not charged immediately. Instead, the purchase is divided into equal monthly installments.

4. Monthly Charges

Each month, a portion of the total amount is charged to the customer's credit card. This continues until the entire purchase amount is paid off.

5. No Interest (Optional)

Splitit often offers interest-free plans, meaning customers can spread their payments over time without incurring additional interest charges. However, this can vary, and customers should check the terms and conditions for the specific plan they choose.

6. No New Credit Line

Importantly, Splitit does not require customers to apply for a new line of credit or undergo a credit check. It simply works with the credit available on the customer's existing card.

By offering a flexible and interest-free installment plan without the need for additional credit checks, Splitit aims to provide consumers with a convenient way to manage their expenses and make larger purchases more accessible. It's important for users to review the terms and conditions of Splitit and understand the specific details of their payment plan before making a purchase.

Does Split it do a credit check?

No, Splitit does not require customers to apply for a new line of credit or undergo a credit check. It simply works with the credit available on the customer's existing card.

Pros of Split it

So what are the benefits to this approach to buying things?

Improved Conversion Rates

One of the biggest advantages of is its positive impact on conversion rates. By offering customers the option to split their payments into smaller installments, businesses can reduce cart abandonment rates and encourage higher order values. The increased affordability often leads to more confident purchases.

Frictionless Checkout Process eliminates the need for credit checks, lengthy applications, or new accounts. Customers can easily select Splitit as their payment method at checkout, providing a smooth and hassle-free experience. This simplicity not only enhances customer satisfaction but also reduces the time spent on the checkout page, streamlining the entire buying process.

Customer-Friendly Payment Option

For consumers who may be hesitant to make significant upfront payments, offers a flexible and interest-free solution. It caters to budget-conscious shoppers, allowing them to manage their finances while still making the purchases they desire. This customer-friendly approach fosters loyalty and repeat business.

Global Accessibility supports multiple currencies and is compatible with various payment gateways, making it a suitable choice for businesses with an international customer base. By catering to a global audience, businesses can expand their reach and tap into new markets.

No Impact on Credit Scores

As does not involve credit checks or credit applications, customers can use the service without any impact on their credit scores. This makes it an attractive option for those who are cautious about credit-related matters.

Cons of Splitit

So, what are the downsides?

Limited Merchant Availability

While has gained popularity, not all businesses have integrated this payment solution into their online stores. This limited merchant availability could potentially restrict customers' choices, leading them to opt for alternative payment methods.

Potential Cash Flow Impact for Merchants

For merchants, the delayed receipt of full payment may impact their cash flow, especially if a significant portion of their sales relies on split payments. It's crucial for businesses to evaluate their financial situation and assess if this payment model aligns with their operational needs.

Non-Refundable Initial Deposits

To initiate a split payment plan, customers are often required to pay an initial deposit. In cases where customers cancel their orders or seek refunds, this initial deposit might not be fully refundable, leading to potential disputes or dissatisfied customers.

Lack of Universal Consumer Awareness

While the concept of "buy now, pay later" has gained traction, might still be relatively unknown to some consumers. The lack of universal awareness could deter certain customers from selecting this payment method, opting for more familiar options instead.

How does Splitit make money?

Splitit generates revenue through fees charged to merchants who integrate Splitit's payment solution into their online stores. The primary source of revenue for Splitit is derived from transaction fees. Here's a breakdown of how Splitit typically makes money:

1. Merchant Fees

When a merchant offers Splitit as a payment option to its customers, the merchant pays a fee to Splitit for each transaction processed through the Splitit platform. This fee is usually a percentage of the total transaction value.

2. Interchange Fees

Splitit may also earn revenue through interchange fees. Interchange fees are fees that merchants' banks pay to cardholders' banks (issuers) for accepting and processing credit card transactions. While these fees are not directly paid by merchants to Splitit, they are part of the overall financial ecosystem in which Splitit operates.

It's important to note that the specifics of Splitit's revenue model, including the exact fees charged to merchants, can vary, and businesses should review the terms and conditions provided by Splitit for the most accurate and up-to-date information. Additionally, the company may refine its business model over time based on market trends and competitive dynamics.

Can I use Splitit in Australia?

Yes, Splitit is available in Australia. If Splitit accepts MasterCard, VISA, and Discover credit cards in the country where you reside (including Australia), and the specific online merchant you are transacting with supports Splitit, then you should be able to use the service with your credit card.

It's important to note that while Splitit works with major credit card networks like MasterCard, VISA, and Discover, the availability of Splitit services can still vary by country and region. The acceptance of specific credit cards may depend on the policies and partnerships in place with financial institutions and card networks in each country.

Which companies use Splitit?

Splitit is used in the following industries, showing that it is used for large and high end purchases in the luxury market, rather than for smaller everyday purposes like Afterpay.


  • Automotive

  • Education

  • Home & Furniture

  • Luxury

  • Jewelry

  • Services

  • Sports & Outdoor

  • Travel

Specifically, Splitit can be used in the following major retailers in Australia:

Can you use Splitit with a debit card?

No, Splitit installment plans can only be paid with credit cards, namely Visa, Mastercard, Amex (merchant dependent), and Discover (merchant dependent). Debit or pre-paid cards are not accepted.

Does Amazon accept Splitit?

No, Amazon Prime does not accept Splitit financing.

Can you pay Splitit off early?

Yes. Visit the shopper portal and choose 'Pay Outstanding Balance.' The complete payment will be processed from your selected card, and you will see the last 4 digits of the card on the screen.

How is Splitit different from Afterpay?

There are a few key differences between Split it and Afterpay, mainly in the user interfae and how repayments are mad.e

Credit Terms

In terms of customer experience, Splitit connects to existing credit cards, offering automatic approval based on credit card limits, while Afterpay conducts a soft credit check and allows repayments using debit or credit cards. Both platforms are fee-free for customers, but Splitit users can benefit from credit card rewards, unlike Afterpay users. Splitit has no late payment fees, whereas Afterpay charges penalties.

Repayment period

In terms of payment periods, Splitit allows flexible installment schedules up to 36 months, while Afterpay follows a six-week repayment schedule. For retailers, Splitit offers various packages with flexible costs, while Afterpay operates on a transaction-based model with a commission rate and flat fee. Splitit provides flexibility in payment periods for merchants, while Afterpay typically releases funds to retailers 48 hours after customer payments.

Site Integration

Regarding site integration, both Splitit and Afterpay can be integrated with leading e-commerce platforms. However, Splitit offers a seamless customer experience without leaving the retailer's site, while Afterpay involves a pop-up window and customer sign-up. Splitit also provides a white-label option for a fully integrated and branded merchant experience, retaining customer data ownership. In contrast, Afterpay requires displaying its branding and logo on the retailer's site.

Merchant Fees

Split it charges lower merchant fees, which makes it better for reatilers, but using a credit card to get yourself further into debt using a repayment plan may not be a better deal for consumers.

Is Splitit a good investment?

Stockopedia lists Splitit as a strong buy, but given the track record of Buy Now Pay Later services, as well as increased market oversight, I would say no. Please keep in mind that this is only my opinion and I am far from an expert.

Splitit review: The Bottom Line

Splitit offers a range of benefits that can significantly enhance the shopping experience for both customers and businesses. It offers consumers a convenient, interest-free payment option that promotes better budget management and financial control.

However, it's crucial for users to consider these potential downsides and use the service responsibly. Being aware of credit card limits, potential fees, and the impact on credit scores can help consumers make informed decisions and avoid any financial pitfalls when utilizing as a payment option.

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