Split Review: A Shariah Compliant BNPL Platform

Split BNPL is rather different from others in the increasingly crowded BNPL space. Find out why consumers stand to benefit. 

Curious about Buy Now, Pay Later (BNPL) platforms’ seemingly unstoppable growth and adoption? You’re not alone. BNPL is increasingly popular —  a recent news report by The Straits Times stated that BNPL schemes chalked up approximately S$440 million in transactions in 2021. 

With multiple BNPL players in the market, you might be left wondering which one has the most to offer. Read on to find out about Split and what you’re in for when you use Split. 

• What is Split BNPL?
• How does Split work?
• Is Buy Now, Pay Later Shariah Compliant?
• What is Shariah Compliance?
• Who can use Split?
• Pros of Split
• Cons of Split
• What charges or fees should you look out for?
• How to use BNPL to your advantage

What is Split BNPL?

Split is a Buy Now, Pay Later (BNPL) service that lets merchants offer their customers the choice of paying in up to three instalment payments online, in-store or over any chat app. 

How does Split work?

It is easy to split your payments into bite-sized instalments with Split. 

1. Shop as you normally would on any of Split’s store partners. Select Split at the checkout page
2. Complete your purchase on Split. Follow the instructions and pay your first instalment with any debit or credit card from any bank
3. Your purchase is confirmed. Split will automatically deduct the instalments from your card on each instalment due date 

The first instalment is to be paid at the point of purchase, the second instalment a month later, and the last instalment the following month. 

In essence, the entire purchase amount has to be cleared within a span of two months!  

Is Buy Now, Pay Later Shariah Compliant?

Long story short, most BNPL providers are not Shariah Compliant. 

Split’s BNPL service is Shariah Compliant

Good for our Muslim family and friends to know, Split is the first BNPL service available to those residing in Singapore to be officially certified Shariah Compliant. Split’s offering operates in accordance with Islamic Beliefs. 

For those who would like to satisfy their curiosity, Split’s BNPL service has been certified Shariah Compliant by Masyref, a registered Shariah advisory company with the Securities Commission (SC).

What makes Split’s BNPL service Shariah Compliant? Split’s transparent business model, of course! All customers who choose Split will never be charged interest, late fees or processing fees, ever. Split users will only have to fork out the money for the price of their order.

What is Shariah Compliance?

Shariah Compliance is a term used in Islamic Finance to indicate compliance of a financial product, service or activity that follows the principles of Shariah (Islamic Law). 

What does Shariah Compliance certification mean for Split?

It empowers Muslim shoppers and merchants in the region with the confidence to use Split’s BNPL service without having to compromise on their religious beliefs. 

This is a striking standout feature of Split as the majority of BNPL players in the market don’t offer this. According to Dylan Tan, Co-Founder and CEO of Split, Split’s Shariah Compliance certification is the right step to take to make BNPL accessible to all, regardless of their religion. 

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Who can use Split?

Residents of Brunei, Malaysia and Singapore above the age of 18 can use Split so long as they hold a credit card or debit card.

Pros of Split

#1 No interest, no admin fees, no late fees 

What you see is what you pay — there isn’t any interest, admin fees or late fees you need to deal with. 

Instead of monetising from late fees and other charges frequently seen at other BNPL providers, the merchants that work with Split are charged a percentage success fee for each order that Split processes.

#2 Up to three easy instalments 

Split users enjoy instant approvals and the ability to split their payment —at no cost— across three fuss-free instalments. 

You’re free (literally and figuratively) to make payment early before your instalment due date if you wish. Simply do so on the customer dashboard.

#3 Flexible first instalment

Just got your paycheck and would like to pay more for your item from the get-go? Split lets you do just that. You can choose to pay more than ⅓ of your original purchase amount for your first instalment. This translates into smaller instalments for your second and third payments. 

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Cons of Split 

#1 Your first instalment may be more than ⅓ of your original purchase

While the industry standard for BNPL payments stands at ⅓ of one’s original purchase amount in most cases, you may be required to pay more than ⅓ of your original purchase for your first instalment. 

When can this happen? This may be the case if Split’s credit risk assessment engine doesn’t have adequate information to evaluate your repayment ability. In such a situation, Split is only able to offer you a fee-free instalment plan that comes with a higher first instalment amount.

#2 You can’t pay less now, and pay more later

Split allows users to pay a higher first instalment amount, not the other way around. The minimum amount that customers pay for their first instalment is generally 33% or ⅓ of their original purchase. 

What charges or fees should you look out for?

Zilch. There are no hidden fees you have to worry about when using Split. 

How to use BNPL to your advantage

Use the right credit card to earn rewards on your expenses wherever possible. While it’s nice to split your payments into several instalments at no extra cost, it is paramount that you be disciplined with your money — avoid the temptation to overspend! 
Remember to pay off your credit card bills in full punctually before their due dates to avoid hefty credit card interest charges and late fees. This point is of utmost importance if you want to make those credit card rewards count. 

Read these next:
3 Tips For Using ‘Buy Now, Pay Later’ Facilities Like A Real Shopping Pro
Buy Now, Pay Later vs Credit Cards: Which One’s More Dangerous?
What Really Happens If You Skip Credit Card Bills, Loan & BNPL Payments
Buy Now Pay Later Comparison Guide: Atome, Hoolah and Rely
A Guide To Halal Investments In Singapore