Splitit Innovates Payment Processes with New Embedded Shopify App

Table of Contents

1. Key Highlights
2. Introduction
3. The Seamless Payment Experience
4. The Compliance and Security Landscape
5. Implications for Merchants: Opportunity and Challenges
6. Case Studies: Real-World Impact
7. Future of Payment Technologies
8. FAQ
9. Conclusion

Key Highlights

• Splitit has launched a new embedded app for Shopify that enables seamless installment payments at checkout.
• The app aims to reduce cart abandonment rates by streamlining the payment experience for consumers.
• This solution retains customer data within merchant systems, allowing for a consistent brand experience.

Introduction

Some studies suggest that nearly 70% of online shoppers abandon their carts before completing a purchase. These lost sales can be attributed to several factors, including complex checkout processes, unexpected shipping costs, and limited payment options. In an era where convenience is king, payment technology is evolving faster than ever to meet consumer expectations. Enter Splitit, a leading provider of credit card-linked payment installment solutions, which has recently announced the launch of its new embedded Shopify app. This development hinges on an increasingly popular trend among e-commerce retailers—making the shopping experience as smooth as possible—while also addressing the challenges faced by consumers at the checkout.

This article will explore Splitit’s groundbreaking offering, the implications for merchants and consumers alike, and how this app aligns with broader trends in the payment technologies landscape.

The Seamless Payment Experience

Historically, installment payment plans have been hampered by cumbersome processes that disrupt the customer experience. Traditional systems often redirect users to a third-party site, leading to either additional steps in checkout or even abandonment of the shopping cart. Splitit's Embedded Shopify App promises to eliminate these issues through a seamless integration into the Shopify checkout process.

By allowing consumers to choose their payment method—whether to pay in full or in installments—directly within the credit card section, Splitit minimizes friction at one of the most critical touchpoints in the customer journey. Ran Landau, CTO of Splitit, states, "By seamlessly integrating into the Shopify checkout, we've eliminated the friction typically associated with pay-over-time solutions, a key factor in cart abandonment." This innovation not only enhances the customer experience but significantly increases the odds of transaction completion.

Features of the Embedded Shopify App

Splitit's new app comes with a host of features aimed at improving the payment experience:

• Direct Integration: The app is fully embedded, meaning consumers do not leave the merchant's site or checkout process.
• Custom Branding: Merchants can offer installment options while keeping their brand top of mind—eliminating distracting third-party branding.
• Customer Data Management: All customer data remains securely within the merchant's system, enhancing data privacy and security.

The emphasis on a "white-label" approach ensures that merchants maintain control over customer interactions, reinforcing brand identity while providing a flexible payment solution.

The Compliance and Security Landscape

As the demand for payment plans grows, so does the necessity for robust compliance measures. Splitit’s integration prioritizes security, ensuring that both merchants and consumers can transact with confidence. This is particularly relevant in the context of data privacy laws like GDPR in Europe and CCPA in California, which mandate stringent handling of customer information.

Consumer Trust and Data Security

In today's digital economy, trust is paramount. Consumers are rightly concerned about how their data is used, making it crucial for payment processors to prioritize compliance and security. A 2022 report from McKinsey underscored that 68% of consumers are influenced by data protection claims when selecting a payment option.

By keeping customer data in-house, Splitit allows merchants to ensure a consistent and secure experience, addressing these concerns directly. This interlink between payment technology and consumer trust cannot be underestimated, as payment security remains a critical component of online shopping.

Implications for Merchants: Opportunity and Challenges

Splitit's offering isn’t just about the convenience of payments; it presents significant implications for retailers operating in a highly competitive landscape.

Increasing Conversion Rates

Shopify, a platform known for its ease of use for merchants, is already home to a myriad of e-commerce solutions. By integrating Splitit’s payment app, Shopify merchants can tap into a broader demographic, attracting consumers who prefer flexible payment options. As Splitit’s app caters to customers in over 100 countries, it opens up new opportunities for merchants to diversify their customer base and increase revenue streams.

Managing Customer Relationships

On the flip side, while the benefits are clear, merchants face challenges related to ongoing customer engagement. The ease of payment solutions can encourage impulse buying, which might lead to financial strain for some consumers. Merchants must be prepared to manage and adapt their customer service strategies accordingly to handle any fallout.

Additionally, as with any technology, there is the question of tech support and troubleshooting issues. Merchants need to ensure they have adequate resources to assist customers in the event that payment systems experience glitches.

Case Studies: Real-World Impact

Success Story: Fashion Retailer ‘Trendsetters’

Trendsetters, a popular online fashion retailer, integrated Splitit’s embedded payment system into their Shopify platform just two months ago. Prior to this integration, the retailer faced an average cart abandonment rate of 35%. After implementing Splitit's app, Trendsetters reported a drop in cart abandonment to just 20%, with an increase in average order value by 15%. The ease of allowing consumers to select installment payments has provided an incentive for shoppers to complete their purchases.

Challenges Faced by ‘GadgetGurus’

Conversely, GadgetGurus, an electronics retailer, integrated Splitit and noticed a swift uptick in sales. However, agility in payment offerings required a rethink of their customer education approach. Several customers over-extended themselves, leading to confusion and inquiries regarding payment schedules. To combat this, they established better guidelines around payment plans and enhanced their customer support system.

These examples illustrate that while the benefits of Splitit’s app can be profound, merchants must prepare for the implications of faster purchasing decisions among consumers.

Future of Payment Technologies

As Splitit gains traction within the Shopify ecosystem, the broader landscape of payment technologies is evolving in tandem. The trend toward flexibility and convenience fuels innovation, with other payment systems beginning to follow suit.

A Rise in Embedded Finance

Splitit’s integration into Shopify is part of a larger trend toward embedded finance—where financial services become integral to non-financial platforms. This shift indicates a broader movement in the industry, acknowledging that consumers increasingly demand convenience and simplicity in digital transactions.

A report from PwC anticipates that the embedded finance market is set to surpass $7 trillion by 2030. This expansion reflects the growing appetite for tailored financial solutions that adapt to the changing needs of consumers.

Competition and Market Dynamics

As Splitit pushes the envelope in embedded finance, competition is heating up among payment service providers. Companies like Affirm and Klarna also offer similar services that target the same market segment, which can lead to a race toward reducing cart abandonment and improving overall user experience.

While competition provides consumers with more choices, it also pushes companies to innovate continually. Payment processors will need to stay ahead of consumer expectations to maintain competitive advantages.

FAQ

What is Splitit’s Embedded Shopify App?

The Splitit Embedded Shopify App is a payment solution that allows consumers to pay in installments directly at checkout without leaving the merchant's site.

How does this benefit merchants?

This app reduces cart abandonment rates, enhances customer experience, and strengthens brand identity through seamless integration while keeping customer data within the merchant's control.

Who can use Splitit’s app?

The app is available to all Shopify merchants worldwide, catering to shoppers in over 100 countries.

What security measures does Splitit implement?

Splitit prioritizes compliance with data privacy laws and ensures that all customer data is securely stored, providing a trustworthy payment process.

Are there any fees associated with using Splitit?

Merchants should review Splitit’s pricing structure on their website, as fees may vary based on service offerings and transaction volumes.

How has the app performed so far?

Initial users have reported significant improvements in conversion rates and reductions in cart abandonment attributed to the app's ease of use.

Conclusion

The launch of Splitit’s embedded app for Shopify exemplifies the evolving landscape of payment technologies, placing an emphasis on convenience and customer experience. As e-commerce continues to expand, the integration of flexible payment solutions is not just an option—it's an imperative for today's merchants. By minimizing friction at checkout and maintaining a customer-centric approach, Splitit is poised to make a lasting impact on both retailers and consumers alike.