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As consumers look to improve their education and gain new skills, many are turning to buy now, pay later services to finance these efforts.
On Wednesday, the Atlanta-based BNPL provider Splitit USA Inc. said its merchant sales volume in digital education and professional development ballooned 350% from 2019 to 2022. The company did not provide actual figures. On average, BNPL users spent $1,500 over 8.5 installments in 2022, Splitit said. That compares to $1,240 over 7.26 installments in 2021.
Among organizations offering Splitit are upGrad, Simplilearn, Fortuna Admissions, ThinkLouder, and Knowledgehut. Currently, Splitit counts more than 100 clients that offer online or offline training.
Diving into data from its top 25 learning and professional-development clients, Splitit found that, through August, the merchant sales volume they generated doubled in 2022 from 2021. And, though the third quarter still has a month left, Splitit says the quarter-over-quarter growth rate is 225%.
One factor driving the growth is a general trend among consumers to upgrade their education, Splitit discovered. “The challenges of the last few years have many re-evaluating their lives, focus, and priorities,” said Nandan Sheth, Splitit’s chief executive, in a statement. “Whether they are looking to upskill in their career, reskill to a new career path or personal development, Splitit is making it easier by allowing students to spread the cost of education over several months.”
In this segment, Splitit offers repayments in four, six, and 12 installments for courses ranging from $2,000 to $5,000 in tuition. Its approval rate averages more than 80%, Splitit says. Splitit uses a consumer’s existing payment card instead of originating new loans to finance these transactions.
