The Interest and Fee-Free Installment Payment Provider Reports Record High Black Friday and Cyber Monday Sales, as Well as Significant New Merchant and Partner Signings
Splitit, a leading global monthly installment payment solution, announced last week an update on its global operations, including Black Friday and Cyber Monday sales trading, new strategic partnerships and new merchant agreements.
“Splitit performed very well over the important Black Friday and Cyber Monday holiday period, with record underlying sales, our first ever day of underlying merchant sales of more than $1M and strong growth in the US in particular,” said Brad Paterson, Splitit CEO. “The higher average order value also shows consumers are increasingly using our service for higher value purchases, a major differentiator for our business.”
“Across our key markets, we continue to make excellent progress in executing on our growth plans, adding new partners and merchants. This demonstrates the strong demand we are seeing for our unique solution, and it is anticipated that it will further strengthen our position in the BNPL market as customers increasingly prefer to use the credit they already have,” Paterson added.
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Black Friday and Cyber Monday sales update
Splitit experienced strong performance over the four-day trading period incorporating Black Friday and Cyber Monday, with a record US $3M in underlying merchant sales processed on its platform. On Cyber Monday, the company recorded its first ever day of underlying merchant sales of more than US $1M. The number of unique shoppers and initiated plans also grew significantly compared to the same period last year.
Growth was particularly strong in the US, a key market for Splitit, where underlying merchant sales grew 83% and initiated plans grew by 57% over the holiday weekend compared to last year.
For the majority of merchants in Splitit’s global network, sales grew during the period, with many of the company’s newest merchants’ major contributors during the sales holiday. Consumer use of Splitit was popular across multiple categories including homewares, jewelry, electronics and luxury accessories.
The average order value (AOV) for this period rose to US $820, an increase on the company’s year-to-date AOV of US $644. Correlating with this AOV growth, the average number of installments per purchase also grew on the year-to-date average. Splitit expects the AOV to remain slightly higher than average during the holiday period, before it then normalizes in January 2020.
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New strategic partnerships with iPay88 and BlueSnap
Under a new three-year partnership agreement with iPay88, an NTT Data company and the leading online payments solution provider in Malaysia, iPay88 will offer Splitit’s installment solution to more than 15,000 online merchants in Malaysia. It is expected Splitit will conduct the initial trial in Malaysia by mid-2020. Upon successful deployment in Malaysia, the partnership will look to expand to other markets iPay88 serves, namely the Philippines, Indonesia, Cambodia, Thailand and Bangladesh. iPay88 processes over RM11B (US $2.7B) and 91 million online payment transactions per annum in Malaysia alone, representing over 60% of that nation’s entire e-commerce market.
Splitit has also signed an agreement with BlueSnap, a global payments technology company listed among Inc. Magazine‘s fastest-growing privately held companies. BlueSnap helps B2B and B2C businesses increase sales and reduce costs for their merchants. Under the partnership, Splitit will integrate its installment payment solution into BlueSnap’s All-in-One Payment Platform.
Splitit will be actively promoted in the new partner communities, making it easier and faster for merchants to integrate the solution into their checkout experience. While the collective commercial contribution of these partnerships is dependent on transaction volumes, they are expected to accelerate Splitit’s merchant acquisition in 2020.
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