![]() In particular, Splitit doesn’t provide financing. Sheth says that consumers want more than a new line of credit – they want more flexibility in how and when they pay, especially with larger purchases. Merchants and shoppers have a wide range of needs that are not addressed with a “one size fits all” approach. Sheth is correct to flag up that not all Buy Now, Pay Later schemes are created equal. Sheth adds: “Although the overall percentage of BNPL use in the UK market may be small, the survey we conducted shows not all BNPL providers are the same and there is significant opportunity and appetite for a better way to pay over time in the UK.” BNPL: not all schemes are created equal It explored several topics around BNPL and the data shows 54% of UK consumers with a credit card would prefer a Buy Now Pay Later service that works with their current credit cards. The survey for Splitit focused on consumers with credit cards. The data validated our hypotheses and value proposition that credit card benefits are important and when given the option, consumers want the best of both worlds – the payment flexibility of instalments while still getting purchase protection and earning their credit card rewards.” Sheth tells RBI: “The survey results were more encouraging than surprising. In the next year, a fifth (20%) plan to use a BNPL service over four times.46% agree using a BNPL service is a smarter way to manage their finances, and.Just under half (49%) agree they prefer a BNPL service that works with their current credit card(s).Over half of UK credit card holders (54%) plan on using a BNPL service within the next 12 months.The survey commissioned by Splitit investigated credit card holders’ attitudes toward spending, specifically around BNPL. The figure, at first glance, seemed implausibly high, but Sheth stands by the headline grabbing statistic. 54% of UK credit card holders will use BNPL in 2022įollowing the appointment of Sheth, Splitit released research suggesting that over one-half of UK credit cardholders would use BNPL in 2022. The company had cash and cash equivalents of $28.9m at 31 December 31, down from $92.8m a year ago. And net cash outflow from operating activities was $52.4m, compared with outflow of $63.1m in 2020. The impairment expense rose from $957,000 in 2020 to $3.8m in fiscal 2020. Income of $10.5m is up from $6.7m in the prior fiscal. Its financial report for the year to end December highlights a loss of $39.7m, up from $25.5m in fiscal 2020. On the other hand, Splitit faces the challenge of mounting losses, cash outflow in excess of cash on the balance sheet and a substantial debt load. The global opportunity for Splitit is tremendous, and I’m excited to be part of the journey that impacts consumers, merchants and shareholders.” Losses, debt and impairments “Additionally, Splitit is the most merchant friendly BNPL platform in the market allowing merchants to maintain a direct relationship with their customers, while supporting the highest BNPL approval rates in the industry. There is unparalleled demand for its innovative payment option letting consumers use their existing credit, rather than new financing, for spreading out large purchases. On his appointment, Sheth said: “I’m honoured to join this disruptive fintech company at an inflection point. Sheth assumed the CEO role with a lengthy to-do list. ‘Unparalleled demand for Splitit’s innovative payment option’: Sheth
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