Allow your consumers to split their spending into easy installments with Splitpay by Fracxn

Now a days, customer preferences are rapidly shifting. There is an increasing demand for flexible, convenient, and easily accessible payment solutions that fit into their daily life. To meet this need, organizations must offer solutions that not only improve the customer experience, but also increase conversion rates and customer loyalty. Splitpay by Fracxn is a sophisticated white-label "Buy Now, Pay Later" (BNPL) solution that lets your consumers divide their payments into manageable installments with a few taps.

Whether you are a merchant, an e-commerce platform, or a digital bank, Fracxn’s Splitpay integrates effortlessly into your frontend systems, ensuring a seamless experience for your customers. In this blog, we’ll explore how Splitpay works, its benefits for your business, and why it’s a must-have for merchants and service providers looking to offer more flexible payment solutions.

How Splitpay by Fracxn Works

Splitpay provides your customers with a simple, quick, and convenient way to break up their payments into smaller, more manageable chunks. Here's a step-by-step overview of how it works:

1. Customer Selects a Payment to Convert

Your customer can select any purchase starting from 100 Euros or more that they would like to split into installments. This is ideal for larger purchases where the customer may prefer to pay over time rather than all at once.

2. Customer Picks a Flexible Repayment Plan

Next, your customer can choose from a variety of repayment plans that span anywhere from 3 to 36 months. This allows them to select a plan that fits their budget and financial needs, providing flexibility and peace of mind.

3. Full Transparency and Freedom

Transparency is a core feature of Splitpay. Your customers will have full visibility into their repayment schedules, ensuring there are no hidden fees or unexpected charges. Additionally, they can reuse their Splitpay line to split up multiple purchases, giving them full control and freedom over their finances.

This ease and transparency not only build trust but also make it easier for customers to make decisions that align with their financial goals.

Use Cases for Splitpay: Before, During, and After Purchase

One of the unique aspects of Splitpay is its versatility. This BNPL solution can be used at various stages of the purchasing process, making it easier for customers to pay in installments before, during, or even after making a purchase. Let’s take a look at these use cases:

1. Top-Up Option (Before Purchase)

Before making a purchase, your customers can choose to pre-fund their card or bank account and pay back the amount in installments. This option allows customers to budget for future expenses while still benefiting from flexible payment terms.

2. Post-Purchase Conversion

If a customer makes a purchase but decides later that they want to convert the payment into installments, Splitpay offers a post-purchase solution. Customers can convert online banking or outbound card payments into installment plans even after completing their transaction.

3. Real-Time E-Commerce Integration

Splitpay integrates seamlessly with your e-commerce checkout process, allowing customers to opt for installment payments at the point of sale. This real-time flexibility enhances the customer experience and can lead to higher conversion rates, particularly for more significant purchases.

Give Customers Full Control

The entire application process for Splitpay is digital, quick, and user-friendly. With the help of integrated video identification for Know Your Customer (KYC) compliance, customers can complete the application in a few minutes. Once approved, they can start using Splitpay to pay for purchases starting from as little as 100 Euros.

The best part? Splitpay can be combined with Fracxn’s white-label bank accounts and cards, allowing you to offer a comprehensive banking experience that integrates seamlessly with your customers’ financial needs.

Why Choose Splitpay by Fracxn?

As a business, offering flexible payment options is a great way to enhance the customer experience and boost sales. Here’s why Splitpay by Fracxn is the perfect solution for merchants, e-commerce platforms, and digital banks:

1. Fully Customizable for Your Brand

Splitpay is a white-label solution, which means the entire customer experience remains embedded in your brand’s look and feel. From application to repayment, the customer will experience a seamless, branded interface that builds trust and strengthens your brand presence.

2. Simple and Smooth Integration

Splitpay integrates effortlessly into your existing systems via Fracxn’s lending APIs. Whether you are running an e-commerce store, a digital bank, or a merchant platform, our APIs nestle themselves behind your frontend, providing a hassle-free integration process that works with your existing customer journey.

3. Safe and Compliant

As a tech provider with a full banking license, Fracxn ensures that all regulatory requirements are met. We handle critical processes such as credit scoring, KYC, risk management, and repayment processing. This allows you to focus on your customers while we take care of the regulatory and operational challenges.

4. Offer Greater Financial Freedom to Customers

With Splitpay, your customers have the flexibility to pay for purchases over time without the burden of upfront costs. This increased financial freedom leads to greater customer satisfaction and a better overall shopping experience, fostering brand loyalty and encouraging repeat purchases.

5. Increase Sales and Customer Satisfaction

By offering Splitpay, you can significantly increase your sales, particularly for higher-value items that customers may be hesitant to purchase in one go. With the option to pay in installments, customers are more likely to complete their purchases, leading to higher conversion rates and greater customer satisfaction.

Hear From Our Partners

Fracxn is already making waves with its innovative payment solutions, and our partners are seeing tangible benefits from offering Splitpay to their customers. Fabiana Mingrone, General Manager Consumer Services at American Express, shares her experience:

“We are very pleased to be able to offer our cardholders a new, outstanding service with Splitpay, empowered by Fracxn, giving them even more financial freedom. With Splitpay, our customers are able to use their American Express cards even more flexibly.”

For businesses like American Express, the ability to offer customers more flexible payment options has translated into higher satisfaction, increased engagement, and more loyalty from their customer base.

The Application Process: Quick, Digital, and User-Friendly

One of the standout features of Splitpay by Fracxn is its fully digital and user-friendly application process. Customers can complete their application in just a few minutes with video identification for instant KYC compliance. Once approved, customers can start using Splitpay for purchases right away.

With a low minimum purchase requirement of 100 Euros, Splitpay is accessible to a broad customer base, enabling frequent use and encouraging repeat purchases. This quick and hassle-free process ensures a positive customer experience from start to finish.

Security, Compliance, and Risk Management

Security and compliance are critical in today’s digital financial ecosystem, and Fracxn takes care of all the back-end tasks required to ensure that your business operates within legal frameworks. When you partner with Fracxn to offer Splitpay, we handle:

• Credit Scoring: We assess the creditworthiness of your customers.
• KYC Compliance: We manage the identity verification process required by law.
• Risk Management: We monitor and control the risks involved in offering installment payments.
• Repayment Processing: Our system tracks and manages repayment schedules automatically.

This comprehensive approach allows you to focus on your business, while Fracxn ensures that all legal and regulatory requirements are met in the background.

FAQs About Splitpay by Fracxn

1. What is Splitpay by Fracxn?

Splitpay by Fracxn is a white-label "Buy Now, Pay Later" (BNPL) solution that enables customers to convert their payments into flexible installment plans. It is designed for merchants, e-commerce platforms, and digital banks, integrating seamlessly into their frontend systems.

2. How do customers use Splitpay?

Customers select a purchase of 100 Euros or more and choose a repayment plan ranging from 3 to 36 months. The application process is fully digital, allowing customers to start using Splitpay after a quick approval.

3. Can customers use Splitpay for multiple purchases?

Yes, Splitpay is reusable. Once approved, customers can split up multiple purchases as long as they meet the minimum purchase requirement of 100 Euros.

4. How does Splitpay integrate with my business?

Splitpay integrates via Fracxn’s lending APIs, which sit behind your frontend system. It works with merchants, e-commerce platforms, and digital banks to provide customers with installment payment options during checkout or after making a purchase.

5. Is Splitpay safe and compliant?

Yes, Splitpay is fully compliant with all legal and regulatory requirements. Fracxn, as a licensed bank, handles all aspects of credit scoring, KYC compliance, risk management, and repayment processing, ensuring that your business stays compliant and secure.

6. What are the business benefits of offering Splitpay?

Splitpay can help increase customer satisfaction and drive sales by offering more flexible payment options. This can lead to higher conversion rates, particularly for larger purchases, and build stronger customer loyalty.

7. What types of purchases can be made using Splitpay?

Customers can use Splitpay for purchases starting from as little as 100 Euros. It is applicable for a variety of purchases, including e-commerce, post-purchase conversions, and top-up options before making a purchase.

Start Offering Splitpay by Fracxn Today

If you’re ready to provide your customers with greater flexibility and a smoother shopping experience, Splitpay by Fracxn is the perfect solution. Whether you are a merchant, e-commerce platform, or digital bank, Splitpay offers a fully customizable, safe, and seamless way to empower your customers with financial freedom.

Get in touch with us today to start integrating Splitpay into your business and see how this flexible payment solution can help you boost customer satisfaction and grow your business. Talk to us and discover the future of installment payments with Fracxn!

These insights into how financial institutions (FIs) handle loan fulfillment times in both consumer and small business (SMB) sectors, which is highly relevant for understanding the potential of Buy Now, Pay Later (BNPL) services under digital readiness. Here’s how the context of the image benefits BNPL services:

1. Quick Fulfillment Aligns with BNPL's Instant Nature:

• BNPL services require real-time or near-instant decisions on credit approval to provide immediate financing options to consumers at the point of purchase. According to the image, 65% of FIs can fulfill both consumer and SMB loans within a day, which is a strong indicator of digital readiness.For these digitally capable institutions, integrating or offering BNPL services becomes easier because their infrastructure can already process loan applications quickly. They are well-positioned to offer BNPL solutions, which thrive on speed and efficiency.Larger institutions, like those with $8B-$10B in assets (where 79% fulfill loans within a day), have the digital maturity to support instant BNPL transactions, aligning with the expectations of consumers who expect quick financing options at checkout.

2. Flexibility in Consumer Payments:

• BNPL is popular because it allows consumers to make a purchase and pay it off in installments, much like split payments. The fact that 28% of institutions can fulfill consumer loans quickly but take more time with SMBs suggests that BNPL could initially focus on the consumer market in these FIs, leveraging their already established digital readiness. By offering BNPL alongside traditional consumer loans, these institutions can diversify their product offerings, making them more attractive to consumers looking for flexible payment options. BNPL gives consumers immediate access to goods, with the flexibility to pay in a way that suits their cash flow, similar to how loans can be structured based on the borrower’s ability to repay.

3. BNPL as a Bridge for SMBs in a Slower Loan Environment:

• The image reveals that for SMB loans, institutions generally take longer (i.e., 84% of community banks or credit unions fulfill consumer loans in a day, but SMB loans take longer). This delay presents an opportunity for BNPL to act as an intermediary financing solution for SMBs. While traditional SMB loans might take longer to process, BNPL can provide businesses with a quicker, short-term credit option for immediate purchases. This can be useful for SMBs needing to finance smaller inventory purchases or operational expenses while waiting for a larger loan to be approved. Digital-only banks or regional banks that show greater digital readiness for both consumer and SMB loans can incorporate BNPL into their offerings for SMBs, allowing them to access working capital quickly and without the formalities of traditional loan processes.

4. Digital-Only Banks are Poised to Dominate BNPL:

• Regional and digital-only banks in the image are shown to have strong digital capabilities, with 43% able to fulfill both consumer and SMB loans in a day, and another 48% able to fulfill consumer loans quickly but take longer with SMBs. These banks, due to their digital infrastructure, are well-positioned to dominate the BNPL market.Since BNPL is largely a digitally native product, FIs that are already geared towards fast, digital loan processing are better suited to integrate BNPL offerings into their ecosystems. These banks can provide consumers with seamless experiences, from approving loans to managing BNPL payments—all done digitally.

5. Enhanced Consumer Trust and Usage:

• As consumers become more familiar with BNPL products, they are likely to expect their trusted FIs to offer similar flexible payment options. Since 58% of larger FIs can process both consumer and SMB loans quickly, they are already equipped to handle the risk assessment, data processing, and automation required for BNPL.FIs can offer BNPL services that rival popular fintech solutions, leveraging their established brand trust. As digital lending readiness increases, consumers will be more likely to adopt BNPL services from institutions that already manage their loans and finances, adding to customer loyalty and retention.

In Short:

This highlights FIs' varying levels of digital readiness for loan fulfillment, which is crucial for deploying BNPL services. The institutions that demonstrate fast, digital loan processing (particularly for consumers) are well-positioned to integrate BNPL offerings, benefiting from their ability to handle large-scale, quick approvals. BNPL can also serve as an immediate financing solution for SMBs, particularly when traditional loans take longer to fulfill.

In summary, the chart shows that institutions with strong digital readiness can seamlessly offer BNPL as part of their suite of financial products, benefiting from the growing demand for flexible, fast, and digital-first payment solutions.

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