Ingenico and Splitit have teamed up in “a global strategic partnership to bring one-touch, no-interest, buy now, pay later capability to the physical checkout experience” using the companies’ respective technologies.
Terms of the partnership were not disclosed.
In a statement, the companies said the deal eliminates current barriers at the point of sale “to deliver a global, one-touch, no-interest BNPL service embedded into the merchant’s existing POS terminal.” For the consumer, the result is “an engaging omnichannel customer experience that helps merchants grow their business while driving loyalty and repeat purchases.”
Splitit brings to the table a BNPL platform that uses existing consumer credit without the need of generating fresh loans. For its part, Ingencio offers clients the ability to select from a catalogue of payments and value-added services “without requiring lengthy and expensive software development. It also avoids the complexity associated with deployment across a variety of terminal brands,” the company said.
The partnership was formed as the number of BNPL users is poised to reach 900 million globally, according to a report from Juniper Research. There are about 360 million users. “At the same time, 75 percent of commerce is anticipated to remain in-store, highlighting a significant opportunity for retailers to offer customers a flexible installment option at the point of sale (POS),” the companies said in a statement. also noting that traditional BNPL services “have struggled to make headway at the point of sale.”
Splitit said there is substantial friction created by requiring consumers “to follow a multistep process to register, apply for funding or log into a third-party service or app creates an out-of-brand experience leading to consumer frustration and abandoned sales.”
Nandan Sheth, chief executive officer at Ingenico, said, “We can deliver a one-of-a-kind solution to tap into the massively underserviced in-store BNPL opportunity, which is three times greater than e-commerce alone. This partnership will transform BNPL at the point of sale, opening incredible new opportunities outside traditional retail.”
Sheth said all industries, including health care, home furnishings, home improvement and repairs, automotive and business services “to name a few, will benefit.”
Michael Balzer, head of sales and strategic partnerships for PPaaS (Payments Platform-as-a-Service) at Ingenico, described Splitit and PPaaS as natural partners. “PPaaS is all about facilitating how people pay and what services they can access at the point of sale,” he said. “Splitit is reinventing installment payments at the point of sale in a way that makes it easy for merchants to propose this option to its customers, and PPaaS can help them do this in a simple and effective way.”