Why is there a problem with deploying a payment transaction? Don explains that unlike in Israel (until recently), where the issuer and the receiver are the same entity – in other countries there is separation. “In Israel, it is possible to deploy payments because the banks have the ability to take responsibility for the transaction throughout the life of the payments, because they are also responsible for the bank account. The issuing bank is responsible for the customer and the customer, and there is total separation.
“Let’s say that a customer who wants to buy in installments on the Best Buy and has a Citibank card, then Best Buy needs a technology relationship with Citibank, but it will have to put 1,000 terminals in 1,000 banks, and that will not happen.” A second problem is that the issuer’s liability is valid for a limited time.
This is where Split comes in, and Don explains: “Suppose there is a $ 1,000 purchase in ten installments, the first $ 100 is charged, and the customer owes another $ 900. We will close these $ 900 from the credit limit, and then take the next 100 and close 800. That’s how we always roll the promise that we will be able to charge future payments, which is zero risk for all the players. “
Spalitet does not need the cooperation of the bank in which the account is conducted, but rather only to work under the regulation of Visa and MasterCard (with which it currently works, and the company also speaks with American Express and Discovery, and hopes to work with them in the future). Spalitet is considered an approved solution, and the business can continue to work with the existing clearing house without any change. “Sometimes there are unexpected or expensive things, for example, the washing machine has broken down, they want to buy an engagement ring, and the distribution of payments makes it easier to manage the home business, and the payments are at 0%