Citibank Equal Payment Plan, page-34

First 34 Last

Share
Profile

Follow
street talk

6,350 Posts.

65

18/03/19

10:10

Post #: 37794090
Share

Originally posted by brentman: ↑

you're not really following this at all.

there are two models for splitit

1) deferred payment whereby the merchant receives their revenue in installments and the bank allegedly takes the risk although i struggle to envisage the bank releasing further funds to a merchant once the user has defaulted. Either way, the obvious issue with this is that there are next to no merchants that can afford to have their revenue paid in installments over a few months let alone over 12 months. This is completely different to layby/interest free models where the merchant receives their money on day 1. As is reinforced by the fact that no merchants use this service, it is a terrible offer and the other buy now/pay later schemes trump it in almost every way (from a merchant perspective). The only thing splitit has going for it is the seamless integration with your card, however this is irrelevant when no merchants offer it as a payment method.

2) where the payment is released to the merchant up front. no one has any idea where this funding is coming from aside from the fact it is not coming from splitit and it is not coming from the bank. a credit card/personal loan would charge a minimum of 12% interest for a loan period of 12 months, how a third party financier is going to be able to beat this significantly is beyond me. There has been absolutely no concrete explanation from splitit as to how this would work and the success of the business hinges on it.

Expand

The prospectus says they have a finance provider in the US and one in the UK. They buy the receivables (factoring). This could cost the merchant anywhere from 4% to 10%+. If the customer defaults, normally the finance company will deduct that from future amounts

SPT Price at posting: $1.60 Sentiment: Sell Disclosure: Not Held
Upvote

0 Great analysis

Reply

Top Stories

PCL

HotCopper users react as Pancontinental Energy's trading halt lift reveals little

CMB

Asian Battery Metals uncover second massive sulphide discovery at Mongolia's Oval play

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

CAF

IP anomaly thrills Cannidah with project extension hopes in QLD

ASX Market Open: Aussie market to leap on best 'Trump trade' bump since election day | November 22, 2024

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

ALY

Alcidion inks deal with Vic health provider Peninsula for use of Miya Precision tech

C1X

iTech inks deal with Chilean lithium giant to progress Reynolds Range

GRL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

There are more pages in this discussion • 45 more messages in this thread...

First 34 Last

Add SPT (ASX) to my watchlist

Citibank Equal Payment Plan, page-34

Top Stories

HotCopper users react as Pancontinental Energy's trading halt lift reveals little

Asian Battery Metals uncover second massive sulphide discovery at Mongolia's Oval play

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

IP anomaly thrills Cannidah with project extension hopes in QLD

ASX Market Open: Aussie market to leap on best 'Trump trade' bump since election day | November 22, 2024

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

Alcidion inks deal with Vic health provider Peninsula for use of Miya Precision tech

iTech inks deal with Chilean lithium giant to progress Reynolds Range

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Featured News