Google, Splitit Team on Installments
Installment payments firm Splitit is expanding its relationship with the Google Store to new markets.
Splitit and Google first teamed up last year to bring Splitit's buy now, pay later (BNPL) offering to Google Store customers in Japan.
Under the new agreement, Splitit will extend that arrangement to offer BNPL payments to customers in the U.S., Canada, and Australia starting early next year, the company said in a news release provided to PYMNTS Sunday (Dec. 4).
The Atlanta-based company said in the release that "the expansion of the original agreement has been a key priority for Splitit this year, and the conclusion of the expanded contract is a significant milestone."
The news comes a little less than a month after Splitit teamed with cloud-based payments provider Checkout.com to offer an "integrated installment payments solution."
Research by PYMNTS shows the increasing popularity of these types of offerings. We found that in 2021, 13.5% of consumers used BNPL services within the prior year, while another 44.7% were aware of it as an option even if they hadn't actually used it. Almost two-thirds of consumers say they are more likely to patronize stores that offer BNPL, and roughly two-thirds said that BNPL allows them to make purchases more often.
Retailers, meanwhile, point to increased conversion rates as one of the most obvious benefits, as customers who use BNPL are much more likely to complete a purchase than those who do not. Fifty-seven percent of merchants that offer BNPL reported improved conversion, countering a common struggle facing eTailers: customers who abandon their carts before checkout.
In addition, retailers report quantifiable benefits in the form of more brand awareness, with 53% of merchants telling PYMNTS that BNPL providers helped expose their brand to new customers. A little under half of the merchants (47%) also reported an increase in average order value. Combined with improved conversion rates, that translates to a hefty increase in revenue.