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Samsung Electronics America is partnering with Splitit USA Inc. to offer installment payments to Samsung wallet users. The new feature will enable Samsung wallet users to make in-store purchases using an existing Visa or Mastercard card in their wallet and pay for the purchase over time. Samsung wallet users will have the option to split a purchase into six or eight bi-weekly payments or six or nine monthly payments, Splitit says.
The new service will start rolling out July 25 in 23 states and the District of Columbia. Credit cards issued by JP Morgan Chase Bank NA are currently not supported for installment payments, Splitit says.
The new feature is expected to broaden the reach of installment payments, which have become common for e-commerce purchases but have been slow to catch on at the physical point of sale. Splitit began supporting installment loans at the physical point of sale last year.
“In-store shopping still accounts for the majority of U.S consumer spending, yet installment payments have remained largely confined to e-commerce,” Splitit chief executive Nandan Sheth, says in a statement. “That changes today. For the first time in the U.S., in-store card-linked installments are available at scale through Samsung Wallet.”
One reason Splitit opted to offer installment loans linked to a consumer’s existing credit card is that card-linked installment plans receive higher customer satisfaction scores than traditional BNPL offerings, according to JD Power’s annual BNPL Satisfaction study.
“Our partnership [with Samsung] marks a pivotal moment in the evolution of payments and customer experience—giving in-store shoppers a seamless way to pay directly from their phones, while helping merchants improve conversion, increase basket sizes, and meet rising expectations at the point of sale,” Sheth says.
