Splitit widens its installment lending pitch to skittish banks

Splitit is launching a white-label payment card designed to help smaller banks and credit unions offer installment plans directly to their customers. For retailers and service providers, this means your customers might soon have more 'built-in' financing options on the credit cards they already carry in their wallets. Unlike traditional Buy Now, Pay Later (BNPL) providers that issue new lines of credit, Splitit uses a customer’s existing credit card limit to authorize the full purchase price while only charging their monthly installments. This move by Splitit aims to bridge the gap between traditional banking and modern fintech convenience. By giving smaller banks the tools to compete with giants like Chase or Affirm, the pool of shoppers with accessible, low-friction financing is likely to grow. For your business, this could mean higher conversion rates without the need to manage multiple third-party lending relationships, as the financing functionality is baked into the customer's preferred bank card. It reduces the 'skittishness' banks have toward installment lending by keeping the transactions within a regulated, card-based framework. Expect to see more customers asking if they can split payments using their standard credit cards as this technology rolls out to local credit unions and community banks.

Source: American Banker — Top News

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