With the new 1stMILE Buy Now, Pay Later powered by Splitit, the merchant receives full payment up front, while the customer can split eligible purchases into monthly installments using a credit card they already have, Splitit said in a Thursday (Aug. 6) press release.
Customers can access these installment payment options at the point of sale, with no separate loan application, credit check or approval process required. They use their existing credit card as they normally would, view installment options on the payment terminal and select a plan, according to the release.
“Consumers increasingly expect payment flexibility across every aspect of their financial lives, including vehicle maintenance and repair,” Rob Murphy, vice president of credit services at 1stMILE, said in the release. “By integrating Splitit’s card-linked installment technology into the 1stMILE platform, we’re giving shops another powerful way to help customers move forward with needed repairs while supporting conversion, customer loyalty and long-term engagement.”
Splitit’s card-linked model allows consumers to use available credit on an existing eligible card and delivers an average approval rate of 85% or higher, per the release.
In the automotive tire and service repair sector, Splitit’s card-linked installments solve the problems of drivers facing an unexpected, and repair shops losing business because customers can’t absorb that expense on the spot, Splitit Chief Technology Officer Ran Landau said in the release.
“By enabling one-click installments directly on the payment terminal, we’re redefining what’s possible for in-person commerce,” Landau said. “Together with 1stMILE, this represents one of the largest card-linked POS installment rollouts in the industry and sets a new benchmark for how installment payments should work at the point of sale.”
The PYMNTS Intelligence report “Managing Unplanned Expenses: How the Pay Later Economy Fits Consumer Needs” found that auto parts and accessories make up the most common category of unplanned purchases.
Among consumers who made emergency purchases in the previous 12 months, 42.9% said they made emergency purchases of auto parts and accessories. The median cost of these emergency purchases was $573.53, according to the report.
“Most consumers make large, unplanned purchases on a regular basis,” the report said.
