Wade Gurnett
Head of Sales for North America, Splitit
The pandemic put e-commerce in overdrive, fueling purchases across every category. And there are no signs this will slow down any time soon. Adobe’s Digital Economy Index notes the continued upward trend in online spending as Americans are on pace to spend $1 trillion online in 2022.
Despite these startling figures, retailers across every industry are struggling with a shopping cart abandonment rate lingering just below 70%. If retailers could cut cart abandonment by just 10%, there would be an additional $300 billion of consumer spending up for grabs. A 10% increase in revenue can mean the difference between staying afloat or going under for small businesses.
Retailers can grow their business by easing cart abandonment and increasing conversion by offering buy now, pay later options to their customers. The popularity of these flexible pay-over-time services has grown over the last few years as more and more merchants are offering these types of payment installments. But it is essential to understand that not all BNPL options are created equal. Some even create as many barriers as they remove.
The premise behind BNPL is simple. Consumers can shop and receive their product right away but spread the payments over time. However, most short-term micro-loans offer cheap, short-term financing, which is ideal for lower-price purchases. Sounds great, unless the shopper misses a payment. Then the fees and interest can be crippling. Worse still, this process can put a barrier between the retailer and their customer. With a lengthy application, checkout abandonment can soar. Even if the transaction is approved, the shopper relationship is now owned by the BNPL provider. The consumer is paying them back, not the merchant who actually sold them the product.
Splitit takes a completely different approach by tapping into the existing credit available on a shopper’s credit card and puts that credit to work in a more intelligent way. The shopper can buy what they want and get it right away while paying monthly installments, all with no additional interest or fees from Splitit. And because it’s using their existing credit card, there’s no application, meaning a simpler, faster checkout experience. Plus, shoppers can enjoy all the perks of their credit cards like points, miles, rewards and cash back.
This seamless checkout experience means incremental revenue, increased conversion, and excellent customer reviews. Splitit integrates easily with all major e-commerce platforms, so you can help sell more and deliver the best customer experience at the same time. Everybody wins!
The Splitit Difference:
1. Attract new, high-value customers
More than 135 million US shoppers with established credit with little to no revolving debt have over $3.1 trillion in spending power. They have the means to buy high-ticket items but are looking for ways to stretch their dollars.
2. Increase revenue
When shoppers pay small, they spend big – up to +20% higher average order value (AOV). In fact, Splitit has a $1,000 AOV, four times higher than other BNPL providers.
3. Get Up-and-running, fast
Simple integration with your existing e-commerce platforms, like Shopify, Magento and woocommerce, means you can offer installment payments on the same day.
4. A better customer experience
Shoppers have a seamless and frictionless experience, never having to leave your site—no extra steps. Just enter your credit card details and select the number of installments.
5. Higher conversions
The seamless and intuitive checkout helps decrease shopping cart abandonment by up to 10% and leads to higher conversions.
Let Splitit help you increase revenue by offering a better experience. Adding Splitit to your online store lets customers spread their payments effortlessly over time with no extra cost to them. It’s a pain-free and responsible way to let your customers make payments over time without adding new lines of credit or unnecessary hassles.
Learn more about increasing conversions and see if Splitit is right for you at splitit.com/smallbiz.
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