Splitit Expands in Auto Repair as Sezzle Posts Strong Quarter

Buy now, pay later platforms are increasingly targeting the automotive industry as repair costs climb, and two major players are taking distinct approaches to capture that market.

Splitit Partners with 1stMILE

Splitit, a provider of installment-payment services, announced a partnership with 1stMILE, a loyalty and payments platform specializing in the automotive sector. The companies plan to roll out their joint payment services to thousands of automobile-service shops, ultimately reaching the more than 17,000 locations served by 1stMILE.

Through this arrangement, shops will receive payment in full while customers select installment options at the point of sale. Both companies support these services through credit cards. Splitit uses existing cards held by consumers, and the company reports an average approval rate of 85%. Terms typically require four payments over six weeks.

Industry figures suggest the automotive-repair industry is a promising market for these services. While a wheel alignment might run less than $200, more involved work, such as a transmission replacement, can cost owners anywhere from $2,500 to $6,000. The link between Splitit and 1stMILE “represents the next evolution of point-of-sale financing for tire and automotive service providers,” says Rob Murphy, vice president of credit services at 1stMILE, in a statement.

As these costs become less discretionary and more necessary, the integration of financing options directly at the service counter provides a convenient bridge between high-ticket repairs and household budgets.

Sezzle’s Strong Quarterly Results

Meanwhile, Sezzle Inc., a Minneapolis-based provider, reported strong quarterly results that highlight the growth potential in the sector. The company’s payment volume grew 37.9% year-over-year to $1.3 billion, while revenue soared nearly 52% to $149.7 million, a quarterly record.

Active subscribers on the platform also grew 76.4% for the quarter, reaching 854,000. Sezzle described this gain as the largest [year-over-year] subscriber gain in company history. This growth helped generate a 58.4% increase in adjusted net income, to $39.3 million.

The company is expanding its service offerings beyond a pure-play platform. Sezzle is preparing to launch Sezzle Send this month, having started SezzleCash in June. SezzleSend will allow users to make peer-to-peer transfers using a recipient’s phone number, with transfers funded over five installments. Recipients must open a Sezzle account to receive the cash. Sezzle Cash is a cash-advance service intended for users’ short-term needs, with repayment available through pay-in-four or pay-in-five installment plans.

Sezzle’s expansion signals a shift toward broader financial utility. The new tools aim to capture a wider audience by simplifying transactions. As the company integrates these features, the platform seeks to solidify its position in the competitive financial technology setting. The broader adoption of such services reflects a changing consumer preference for flexible payment solutions. [1] Google Maps Gets AI Powered Upgrades