Splitit and Zip Expand Into New Financial Products
The buy now, pay later sector is evolving past basic checkout financing. Two major providers, Splitit USA Inc. and Zip Co Ltd., are expanding their offerings into new financial products. Splitit plans to release a white-label credit card for banks, while Zip prepares to introduce a same-day cash loan service.
New Products for Financial Institutions
Splitit will launch the Splitit World Mastercard. The company says the card combines installment plans with a financial institution’s own brand. Unlike some services that use checking accounts or debit cards, Splitit uses an existing credit card to fund the purchase. The process involves placing an authorization hold for the full amount at checkout, then charging the card in monthly installments.
“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 receive the card will gain access to standard Mastercard features, including tokenization services, dispute resolution, and Zero Liability Protection, the company states.
Zip Expands with Same-Day Cash Loans
Zip intends to debut Zip Cash, a product that allows users to access loans of up to $500. Each loan carries a flat origination fee, and customers can select their own repayment dates. Zip says this product differs from other short-term lending options because it does not break the loan into multiple fee-generating parts or use tips. The National Consumer Law Center describes tips in this context as a form of disguised interest.
Zip, which was founded in Australia in 2013, says it plans to launch the service during the 2026 holiday season. More than 100,000 customers are already on the waitlist. Zip says the loan extends its installment-payment experience beyond the checkout and can assist consumers with everyday expense payments. Loans are originated by WebBank.
