Launching Splitit World Mastercard — Created for Credit Unions and Mid-Sized FIs
By Roy Urrico
In a new twist on buy now, pay later (BNPL), Atlanta-based Splitit (pronounced split it), announced plans to add a solution to its installment platform with the upcoming launch of the Splitit World Mastercard, a white-label offering built for credit unions, mid-sized banks, and other financial institutions. The new offering brings built-in installments to qualifying everyday spending.
Everyday purchases on the Splitit World Mastercard, expected to be available to financial institutions in early 2027, can be paid in full within 30 days. Cardholders set their preferred spending threshold in the app and have the option to divide purchases above that amount automatically into predictable monthly payments.
“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,” said Nandan Sheth, CEO of Splitit, in a conversation with Finopotamus.
FIs Have the Relationships
Credit unions and banks already have the relationship, the brand and the primary account, noted Sheth. “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.”
For example, a consumer can set their spending so that a morning coffee would not qualify, but a new laptop amount could automatically split into monthly installments. Cardholders stay in control throughout the process, with the flexibility to switch a purchase back to pay-in-full or adjust the installment plan in the app before their statement is due.
Splitit powers the installment technology and provides an AI-enabled mobile experience that credit unions or banks can embed in their own app. Financial institutions bring their member or customer relationships, trusted brands, and distribution. This allows financial institutions to expand their lending and payment offerings within their existing user experience, providing greater choice and flexibility without outsourcing relationships.
The card combines Splitit's installment capabilities with Mastercard's payments infrastructure, acceptance network and deep-rooted relationships across the FI community. To participate, issuers, merchants, and distribution channels follow network guidelines, responsible lending practices, and data usage practices to ensure safe, secure, and consistent experiences. Consumers receive offers by other Mastercard products, including tokenization, dispute resolution, and zero liability protection.
Squeezed CUs and CFIs
“Credit unions and community banks are being squeezed from two separate directions,” Sheth told Finoptamus. “One would be large money center banks that are coming into smaller markets and heavily incentivizing consumers to open up a banking relationship starting with the DDA (demand deposit account). My son lives in Florida, in Coral Gables, he goes to University of Miami. He just got an offer from Chase to set up a bank account and they are going to pay him 500 bucks.”
Sheth continued, “Fintechs are also squeezing credit unions and community banks. They are delivering next generation products that are more in tune with the next generation consumer.”
Splitit is trying to balance that equation by offering credit unions and community banks embedded financing solutions that allow them to create greater stickiness and loyalty with their account holders, by creating new sources of revenue and attract a new generation of members, explained Sheth. “We're doing that through delivering a very transformational set of solutions.”
Solutions for Credit Unions
Sheth described two solutions Splitit offers credit unions:
1. Debit card linked installments, directly integrated into their core banking platform and their online banking app. “Most credit unions have DDA accounts, most of them have a debit card. Not all of them choose to have a credit card, and even when they do, the credit cards do not scale as quickly as they would probably want,” acknowledged Sheth.
Splitit also delivers a line of credit that sits adjacent to their DDA debit card where Splitit originates the installment and the loan. “Splitit takes all of the risk, and the credit union benefits from the consumer not leaving the credit union walls to get transactional installments or buy now, pay later,” said Sheth.
Splitit embeds into an existing set of members and transactions that are already occurring on the debit card. “We're working with the credit union to convert some of the larger transactions to installments post-purchase, but we're also allowing the debit card with that installment line to be used at the checkout,” said Sheth. “So instead of leaning into and signing up for Klarna, the credit union member would just unlock the installment line directly off their debit card.”
2. Splitit World Mastercard, a white-label card that combines everyday spending with built-in installments. “Think of this as a card out of the box or white label card program, but it is not a credit card, nor is it a debit card. It is the best of both cards combined into one card,” maintained Sheth. “Just like we do with the debit linked product, we bring the technology stack, we bring the lending, the risk management, customer support. The entire program is run by us.”
In addition, members receive a credit line connected to the card. “And that credit line is not a revolver. We do not believe in revolvers. We feel revolvers get consumers into trouble,” said Sheth. It is not a never-ending revolver, and you know exactly how much you are going to pay.” An AI agent interacts with the member to ensure that their financial health is preserved, added Sheth.
Consumer’s Choice
The consumer data will come from the credit union directly through their core banking database. We will use that data to pre-approve consumers. All of the credit union data stays with the credit union. “We never use that data for marketing purposes, or anything else outside of what's governed by the credit union contract,” assured Sheth.
“We'll work with the credit unions, market to the members, letting them know that they've been pre-approved for this new program,” Sheth confirmed. “They will click a few buttons, have acceptance, and then they'll adopt the product. And then, on an ongoing basis, we will work with the credit union to continue to market to their new customers.”
Sheth provided three ways a member/consumer can create an installment plan.
“As you are making the purchase through the online app, you'll get a notification to say, ‘you just made a $500 purchase at Best Buy. Here are the installment plans available, six months, 12 months. Here's the exact cost. Do you want to originate or opt in?’ So, number one is fairly real-time.”
“You can preset. You can say, ‘any transaction over $5,000, I want to put it on 12 months. Any transaction that is in the auto segment, I want to put on six months.’ We call that pre-installments.
“There is post-purchase where after you have made the purchase, you can put it on installments. But once you opt in, as long as you've got enough credit line, it's instant. You literally click two buttons, the installment starts.”
Splitit has also integrated with Jack Henry’s SilverLake core banking platform and Banno Digital Platform via the Jack Henry Fintech Integration Network (FIN), enabling credit unions and banks to offer embedded installment payments directly within their banking relationship.
For Community FIs
“We're going to distribute (the Splitit World Mastercard) through credit unions, and community banks,” confirmed Sheth. “MasterCard firmly believes in the credit union/community bank space, and they and Splitit are jointly going to distribute this product to that community.”
It is difficult for credit unions and community banks to create innovative products, as fast as a fintech, Sheth suggested. “So, we want to be the embedded financing platform or infrastructure for credit unions and community banks. So, we, in effect, become their fintech. And in all cases, we are leading with their brand. We never cross-pollinate or take custody of a customer.”
Sheth described the installment plan as “a very classic, unsecured consumer loan. we will do all of the underwriting. We will do the ongoing risk management. We will do all of the KYC, AML (know your client, anti-money laundering). We will use our liquidity to pre-fund those installments, our platform to do all the statementing. We use our customer support people. So, it is an entire, fully embedded solution that is out of the box.”
As an incentive, for the first three credit unions that adopt Splitit World Mastercard product, Splitit will waive the setup fee, monthly minimums, and pay the credit union a revenuer share based on “our” margin,” according to Sheth. “Over time, we're going to have a small setup fee, a small monthly, subscription fee, and then a revenue share that goes back to the credit union.”
