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As the modern, online-based buy now, pay later market has matured, the type of products from BNPL providers has diversified. Splitit USA Inc. will launch the Splitit World Mastercard credit card as a white-label offer for financial institutions while Zip Co Ltd. intends to debut Zip Cash, a same-day cash loan product.
Entering the U.S. initially as PayItSimple USA Inc. in 2014, Splitit says the new credit card combines features of installment payment plans under a bank or credit union’s own brand. Unlike other BNPL services that may allow consumers to use a checking account or debit card to fund BNPL purchases, Splitit, which adopted that moniker in 2015, lets consumers split the repayment using a consumer’s existing credit card. It places an authorization hold for the entire transaction amount at the time of purchase and then charges the card in monthly installments, which decreases the authorization hold.
“The Splitit World Mastercard is a new type of credit card built for banks and credit unions that resembles the simplicity of debit for consumers and pairs it with the flexibility of installments,” Nandan Sheth, Splitit chief executive, says in a statement. “Banks already have the relationship, the brand, and the primary account. What many of them lack is a way to offer installment plans at the point of purchase without having to build a lending business from scratch. Our white-label card gives them that under their own name.”
Consumers who are issued this Mastercard-branded product receive typical card benefits, such as access to tokenization services, dispute resolution, and Zero Liability Protection, Splitit says.
In related news, Zip, which entered the U.S. market in 2020 with its acquisition of Quadpay, says Zip Cash will enable users to access loans of up to $500. Each loan includes a flat origination fee, and customers can request their own repayment dates. The loan, unlike some other short-term lending products, does not break up the loan into multiple fee-generating parts or use tips, Zip says. Tips in this context are a form of disguised interest, according to the National Consumer Law Center.
Zip, which was founded in Australia in 2013, says it plans to launch Zip Cash during the 2026 holiday season. More than 100,000 Zip customers are on the waitlist already. Zip says the product extends its installment-payment experience beyond the checkout and can help consumers with everyday expense payments. Zip Cash loans are originated by WebBank.
