The partnership, announced Monday (March 10), will employ Highnote’s technology to make Splitit’s buy now, pay later (BNPL) offering via digital wallets available at the point of sale for the first time.
“With this new partnership, Highnote’s tokenized virtual cards are leveraged to pay merchants and create real-time functionality so that Splitit can offer the consumer a new way to choose payments over time,” the companies said in a news release.
“From the consumer perspective, they can now use their digital wallet to access Splitit’s card-linked, embedded, installment payment options, which include a low-friction pay-later approval process that leverages a consumer’s existing available credit — eliminating the need for a credit check,” the companies added.
The release noted that Highnote’s platform allows Splitit to tap into “highly optimized tokenization and virtual card capabilities,” letting the company “leverage on-demand funding and collaborative authorization to go to market with a unique and compelling offer.”
The Splitit/Highnote partnership comes a little less than two months after the latter company raised $90 million in a Series B funding round, and announced its expansion into U.S. merchant acquiring with the launch of its acquiring solution.
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“The acquiring landscape has evolved over time and represents an opportunity for next generation customers to accelerate growth through embedded acquiring in addition to embedded issuing,” Highnote CEO John MacIlwaine said in a news release.
Meanwhile, PYMNTS wrote last week about the growing use of pay later plans, a trend driven by consumers searching for more flexible payment options.
The recent PYMNTS Intelligence eBook “10 Impact Statements: The 2024 Pay Later Report” examined how these installment plans are being used, who benefits from them and the factors leading to their adoption.
“For many consumers, pay later plans are a tool for managing day-to-day expenses. Among those living paycheck to paycheck, 75% have turned to these plans within the past year. This trend is not limited to low-income households,” PYMNTS wrote. “Even consumers earning more than $100,000 annually are turning to installment plans, signaling that these options appeal across all financial levels.”
The eBook shows that consumers who face difficulty paying bills were four times more likely to use these plans than people with a more stable financial situation, suggesting that BNPL options are not only a financial lifeline, but also a preferred choice for many consumers looking to manage their budgets.
