SoFi is rolling out a new buy now pay later product for eligible members.
The personal finance company said in a Wednesday (Dec. 14) blog post that it is the first bank to launch within the Mastercard Installments program.
SoFi is rolling out early access to this Pay in 4 option over the coming weeks.
“With Pay in 4, SoFi members will now have another way to pay for larger travel or select purchases from local small businesses to major retailers, anywhere Mastercard is accepted,” the company said in the post.
This new option allows members to split a purchase of between $50 and $500 into four interest-free payments. It can be used at merchants across the United States, both in-store and online, according to the post.
Pay in 4 cannot be used for everyday purchases in categories like groceries, restaurants, bars and gas stations; it is meant for larger purchases like flights, hotels, electronics, clothing, home improvement and other retailers.
The first payment is due at the time of purchase and can be pulled from the member’s SoFi checking account, while the remaining payments are due every two weeks. Members will be prompted to set up Autopay from their SoFi checking account.
SoFi members who are eligible for Pay in 4 will see an offer online or in-app. The firm will determine eligibility by seeing if members maintain a qualifying direct deposit, pass a soft credit check and meet its risk requirements.
“Everything we do at SoFi is geared around helping people get their money right, and our new Pay in 4 offering is the next iteration of that,” the firm said in the post. “By allowing people more flexibility in how they pay for bigger purchases, we’re giving members the freedom to manage their money the way that best suits their needs.”
SoFi reported Nov. 1 that it has 4.7 million members, 61% higher than a year earlier.
Management said during the company’s Nov. 1 earnings call that it would be offering Pay in 4 options in the coming months to help satisfy demand for installment offerings, particularly from lower-income consumers.
“We’ll continue to be nimble in the marketplace,” SoFi CEO Anthony Noto said during the call.
The program within which SoFi is launching the BNPL option — Mastercard Installments — enables banks, lenders, FinTechs and wallets to offer BNPL experiences at checkout.
As of July 28, the Mastercard Installments program leverages Mastercard’s global acceptance network of more than 90 million merchants.