As consumers seek to improve their education and learn new skills, many are turning to the immediate purchase of paid services to fund these efforts.
On Wednesday, the Atlanta-based BNPL provider Splitit USA Inc. said its digital education and professional development merchant sales volume grew 350% from 2019 to 2022. The company did not provide actual numbers. On average, BNPL users spent $1,500 on 8.5 installments in 2022, Splitit said. That compares to $1,240 over 7.26 installments in 2021.
Organizations offering Splitit include upGrad, Simplilearn, Fortuna Admissions, ThinkLouder, and Knowledgehut. Currently, Splitit has over 100 clients offering online or offline training.
Diving into data from its top 25 learning and professional development clients, Splitit found that, through August, the volume of merchant sales they generated doubled in 2022 compared to 2021. And, Although there is still a month to go in the third quarter, Splitit says the quarter-on-quarter growth rate is 225%.
One of the factors driving the growth is the general trend among consumers to improve their education, Splitit found. “The challenges of the past few years have caused many people to re-evaluate their lives, their focus and their priorities,” Nandan Sheth, chief executive of Splitit, said in a statement. “Whether they’re looking to improve their career skills, transition into a new career, or grow personally, Splitit makes it easy by allowing students to spread the cost of education over several months.”
In this segment, Splitit offers refunds in four, six, and 12 installments for courses ranging from $2,000 to $5,000 in tuition. His approval rating averages over 80%, according to Splitit. Splitit uses a consumer’s existing payment card instead of issuing new loans to fund these transactions.