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

Traditionally, financial institutions (FIs) have struggled to unlock flexible payment options to their customers during the purchase journey. Instead, their offerings typically focus on "post-purchase" installment plans, which allow cardholders to split the cost of large purchases after they receive their statements. This approach has prevented FIs from tapping into the impulsive "during purchase" BNPL opportunity, successfully dominated by Buy Now, Pay Later (BNPL) fintech companies.

By offering on demand flexible payment solutions at the point-of-sale, BNPL fintech providers are increasingly disrupting the traditional relationship between FIs and their customers. FI-Pay later changes the game by leveling the playing field. It empowers FIs to become key players in the "during purchase" BN PL market by allowing them to offer their existing customers installment 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. The challenges facing issuers in today's market are significant.

With over 4,000 banks and credit unions in the United States alone, the adoption of diverse single-bank BNPL offerings poses a dilemma for merchants desiring integration and operating simplicity. FI-Pay Later by Splitit addresses this issue head-on, offering a unified, easy to integrate solution that unlocks multiple FIs, thereby streamlining the process for adoption and ensuring a seamless experience for shoppers. FI-Pay Later offers turnkey capabilities that enable FIs to generate incremental fee income from existing relationships.

FI-Pay Later also offers multiple integration options, including direct connections, connections through payment networks, or integration via issuer processors. Key Features: Unified merchant facing API standard; eCommerce plugins, POS SDK's and single entry point for multiple FI installation programs; End-to-end and modern experience emphasizing the FIs brand, within a streamlined checkout experience, designed to optimize sales conversion; One-click installment selection at checkout with customizable preferences for such things as plan duration; AI-powered waterfall, with dynamic shopper fees, on-demand card art, and risk parameters unique to each FI; Embedded network installment programs including Visa's (VIS) and MasterCard Installments; Optionality for FIs or Splitit to pre-fund the merchant, and collect the installments from the shopper; Merchant portal including reporting, exception management, and parameter setting across all participating banks; Issuer portal including reporting, transaction research and plan configuration options. Banks hold a natural advantage in the buy now, pay later (BNPL) market due to two key factors; FI-Pay Later, becomes the key for FIs to capitalize on these strengths and seamlessly offer BNPL options through the Splitit orchestration engine, designed to shift the power back to FIs and merchants.

Recent research by PYMNTS has shown that 66% of consumers want to consume installment offers before deciding what to buy, not after the fact. Further PYMNTS research also shows that 70% of current BNPL users say they would be interested in using BNPL plans from their banks if they were available.