Splitit's BNPL service differs from that of its competitors in that it allows customers to use their existing credit limits to pay off purchases in interest-free instalments. With Splitit, there is no need for additional registrations or applications — buyers can make use of the platform through their existing credit cards.
While Splitit touted this unique payment solution in its annual report as a window into an "under-served and large global market opportunity", it may leave it more vulnerable than its competitor's to Visa's plans to break into the BNPL world.
The credit card giant announced its plans to join the BNPL party in late June 2019, and in December released a new set of guidelines for U.S. consumers that rivals the Splitit offering.
When Visa announced its BNPL plans in June, Splitit's share price fell by 25 per cent in three days.
And since Visa's new policies came into effect on January 25, Splitit shares have fallen over 42 per cent.