Splitit enables banks to offer in-checkout instalment payments

By Delisha Fernandes

Splitit, a card-linked instalment platform powering merchants and shoppers, has announced the launch of FI-PayLater.

Splitit will unlock its extensive merchant network to banks and card issuers (FIs) that wish to offer instalment plans to existing customers directly at the merchant checkout. Splitit’s solution, FI-PayLater, enables FIs to connect directly to Splitit or connect via their existing card network to drive incremental lending and fee income from BNPL use cases.

Traditionally, financial institutions face difficulties in providing flexible payment options to their customers during the purchase process, as they tend to focus on post-purchase instalment plans. By utilising this approach, financial institutions are prevented from tapping into the “during purchase” BNPL capabilities, dominated mainly by FinTech companies.

“By enabling FIs to present compelling instalment offers to their customers at the merchant checkout, we enable FIs to become relevant within the ‘during purchase’ instalment market. Additionally, giving issuers the ability to pre-fund the merchants and charge the shopper driving new fee income in the environment of regulated interchange,” said Nandan Sheth, CEO, Splitit. “We’re allowing FIs to capitalise on their inherent advantages of scale, trust, and available credit within the instalment economy.”

FI-PayLater empowers FIs to become key players in the “during purchase” BNPL market by allowing them to offer their existing customers’ instalment plans directly at checkout, thereby enhancing their brand presence and providing customers with more choices from their trusted bank. Additionally, merchants experience increased sales driven by seamless, flexible payment options. This approach not only strengthens customer loyalty but also positions FIs as pivotal players in the evolving landscape of consumer finance.

Collin Flotta, Head of Product, Splitit, added, “Many FIs have expressed a strong desire for this type of solution, and we’ve responded by delivering it. Our single entry point and extensive network of merchant endpoints make FI-PayLater the easiest and most effective pay-later option for issuers to adopt, integrate, and operate across all consumer touchpoints, allowing us to lead the market and improve the economic model for all involved.”