Splitit USA Inc. furthered the expansion of buy now, pay later loans beyond the point-of-sale Wednesday through its parentship with letus (formerly RentMoola), a Vancouver, B.C.-based fintech that provides rent advances, credit reporting, and other consumer-credit solutions. By partnering with Splitit, letus can offer tenants the option of spreading monthly rent payments or security deposits over several monthly installments with no additional interest charges.
Consumers with open to buy on their credit card are automatically pre-qualified to use Splitit and not required to fill out a loan application or undergo a credit check. As part of the deal, letus will be able to brand Splitit’s BNPL solution as its own.
“letus is a perfect example of the power of Splitit’s Installments-as-a-Service platform,” Splitit Chief Executive Nandan Sheth says in a prepared statement. “We are the technology enabler, helping an innovative company like letus offer installment payments on their terms.
Splitit’s platform is embedded within the existing payment experience without the added complexities of legacy third-party installment-payment options, Sheth adds.
BNPL loans, the popularity of which has exploded the past couple of years, represented 2.9% of global e-commerce transaction value in 2021 and are projected to have a 5.3% share by 2025, according to FIS Inc.’s 2022 Global Payments Report. Over the past year, BNPL has been expanding its reach beyond traditional online checkouts to enable consumers to finance other types of purchases and payments, such as travel.
In related news, Splitit is relocating its global headquarters to Atlanta from New York, where it had been since 2019. Splitit says the decision to relocate to Atlanta puts the company in the heart of a tech community that is home to more than 200 fintechs. These companies generate more than $72 billion in annual revenue and process more than 70% of all transactions in the United States, according to the company.
Splitit will continue to house its research and development unit in Israel and its finance unit in Australia.