Sezzle vs Splitit: Which Buy Now, Pay Later App is Better? - Miami Herald

Choosing the right Buy Now, Pay Later (BNPL) provider depends entirely on your target customer’s credit profile and how you want to manage risk at checkout. This comparison highlights a fundamental divide in the industry between credit-granting apps and credit-utilizing technology. For retailers, the choice between services like Sezzle and Splitit impacts your conversion rates and your customers' monthly budgets. Sezzle operates as a traditional BNPL provider. It issues a new, short-term loan to the customer. This is ideal for younger shoppers or those with lower credit limits who want to split smaller purchases into four interest-free payments. However, it requires a soft credit check and the customer must manage a separate account with the lender. This adds a layer of friction but opens the door to shoppers who don't have high-limit credit cards. Splitit takes a different approach by using the customer’s existing credit card limit. It does not issue new credit; it simply rings a pre-authorization on the shopper's current Visa or Mastercard. This is a major win for high-ticket merchants. It allows customers to pay for luxury goods or expensive services over time without the 'hit' of a new credit application. Because it uses existing credit, approval rates are higher for established spenders. Retailers should evaluate their average order value (AOV) before choosing; Sezzle wins for small daily purchases, while Splitit is the superior tool for preserving credit scores on major investments.

Source: Google News: Splitit

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