As it pushes to expand installment lending inside brick-and-mortar stores, Splitit is turning to digital wallets, hoping to pick up scale with a combination of contactless payments and the vast reach of the big technology companies that operate the apps. The company’s first move is to link to Samsung Pay, which is adding a feature that enables consumers to pay over time using existing credit at the point of sale. Splitit did not release the exact number of merchants that would be added, saying it would be “most stores” where Samsung Pay is available. Splitit, which told American Banker it plans to announce another large mobile wallet integration in the coming months, is seeking to reach more merchants as more payment technology companies and banks join the fintechs that have dominated the BNPL industry. “An NFC wallet gives us access to millions of consumers and [thousands] of merchants that have NFC terminals,” Splitit CEO Nandan Sheth told American Banker.
Sheth was referring to near-field communication, the technology that enables mobile phones to “talk to” point of sale terminals that accept contactless payments in stores. Eleven years after the launch of Apple Pay, which uses NFC as a core technology, there are more than 230 million NFC terminals globally, according to Research and Markets, adding that 99% of POS terminals shipped in North America and Europe are NFC enabled, with near saturation in Latin America and Asia. Samsung Pay is on pace to process more than 1.6 billion payments globally, and has 35 million active users in the U.S., according to Coin Law, which reports Samsung Pay’s compound annual transaction growth rate in the U.S. is 9%. Apple Pay has 69 million users in the U.S. and 659 million globally, according to Coin Law, which adds Google Pay has 165 million U.S. and 820 million global users. NFC payments are 85% of Samsung Pay transactions, and the app is available in 31 countries. “We’re starting in the U.S. but Samsung Pay is globally large and will move into the large Samsung Wallet markets, primarily in Europe and Asia,” Sheth said. Samsung did not return a request for comment. Like Apple and Google, Samsung has added financial products to its mobile technology over time, giving Samsung incentive to add features that enable flexible payments. For example, Samsung Pay in late July became a payment method and deposit option for trading user accounts in the Coinbase app, boosting Samsung’s reach into digital assets. As Samsung Pay and other mobile wallets grow, Splitit can boost usage by creating payment flexibility, Sheth said. “We can engage those consumers inside the wallet and drive foot traffic for merchants that accept NFC terminals,” Sheth said, adding Splitit would aggressively market to consumers ahead of the holidays in December.