Splitit Brings Mobile Payments to ASX, Closes IPO
Fintech developments are coming in from all over the spectrum these days, and that includes mobile payments. In fact, Splitit—a solution that opens up access to monthly installment payments—recently dropped word our way that it had successfully concluded its recent IPO, giving it not only access to trade on the Australian Securities Exchange (ASX), but also a hefty $12 million Australian (about $8.7 million US as of this writing) in capital to work with.
Splitit gives retailers access to an immediate, customer-facing solution that allows customers—whether shopping in store, online, or via mobile devices—to split their bill into installments using a current debit or credit card. The installment payments come without fees or interest, and the process requires no credit check or even application to carry out, which makes this an attractive option to offer shoppers.
Already, Splitit has not only been put to use, but also has seen substantial success. Reports note that, by the end of 2018, Splitit had processed over $94 million Australian—about $68 million US—across a combined 118,000 transactions. This suggests an average transaction size of roughly $797 Australian, which would make sense; customers would likely be eager to take an $800 bill and turn it into 12 easy payments of roughly $67.
Splitit plans to use its new capital, reports note, to step up its offerings and even launch its own mobile payments system complete with mobile wallet.
Indeed, with the average American abandoning 11 online shopping carts a year—which means billions in lost revenue to retailers—the ability to turn a hefty bill into several smaller bills is likely appealing. This in turn should drive interest at the retailer level, who might well even pay to have Splitit in their arsenal. The ability to turn lost sales into actual sales with an app should prove valuable, and in a time when retail margins are pretty slim thanks to brisk competition and a fickle customer, any edge is an edge worth considering.
Splitit’s proposition should give mobile payments a leg up too, especially if it launches its own tool here. That bill-splitting function could be a real winner, and before too long, we’ll see firsthand just how well it works.