Banks and Merchants Demand Flexible Payment Tools Amid Market Volatility

BNPL partnerships help banks and merchants meet the needs of consumers and navigate regulations, Splitit CEO Nandan Sheth writes in a new PYMNTS eBook, “Halftime 2025: Charting the Future of Payments.”

The first half of 2025 has brought much-needed clarity to the payments landscape. With consolidation moves like Global Payments/Worldpay and FIS/Issuer Solutions, it’s clear that the future won’t be won by scale alone. It will be shaped by intelligence — machine-driven decisioning, adaptive infrastructure and precision focus. Agility, not size, is the new edge.

At Splitit, we’re not reacting to these changes — we’re aligned with them. Our platform is designed to empower, not replace, the ecosystem: we connect banks, merchants and consumers in a way that amplifies their existing strengths instead of competing for control. This isn’t validation of a strategy. It’s proof that the ecosystem needs partners who can embed intelligence and agility into the flow of commerce — and that’s where we’ve been heading all along.

Banks want consumer-ready tools they can deploy quickly, without overhauling their stack. Merchants want to offer seamless financing experiences without surrendering the customer relationship. Splitit delivers both — with an embedded, white-label installment infrastructure that puts issuers in control of the offer and merchants in control of the experience.

This mindset has become our operating model — what we call Splitit 2.0. It’s not a feature release. It’s a company-wide evolution. We’ve moved beyond eCommerce and credit cards into debit cards, DDA-linked payments, faster payments and in-store POS. Our platform has become a flexible technology fabric that lets incumbents move with the speed of FinTechs — without sacrificing trust or control. And by leaning into this SaaS-based model, we are shifting our business to scale with the market.

Buy now, pay later (BNPL) is no longer a novelty — it’s become second nature for consumers. But with mainstream adoption comes new expectations. Consumers want transparency. Issuers want control. Regulators want responsibility. Splitit meets all three. We work within existing credit frameworks, giving banks the tools to offer responsible, real-time installment plans that preserve customer loyalty and reduce risk — without the pitfalls of over-extension or opaque underwriting.

At the same time, merchants are facing tighter margins and more volatility than ever. Financing options need to be as dynamic as their businesses. Our hybrid cost-sharing model gives merchants the ability to fund offers in ways that align with their margin profile, all while optimizing for conversion.

What’s Next: 3 Forces Reshaping our Landscape

Embedded finance will disappear into the background.
We’ve moved past adding yet another button at checkout. True embedded finance happens behind the scenes — woven into the experience that powers commerce. The most impactful solutions will be invisible, automatic and native to the rails already in use.

Contextual payments will overtake channel-specific design.
Consumers no longer think in terms of “online” or “in-store.” They expect a unified experience across every touchpoint — this includes installments. Payment options need to follow them — dynamically and contextually — based on behavior, preferences and timing, not just channel.

AI will redefine risk and approvals.
AI-powered decisioning is enabling issuers to make intelligent installment offers in real time — tailored to cardholder behavior and risk appetite, without the friction of applications or manual reviews. That’s not just efficiency. It’s a strategic advantage.

Splitit is built to be embedded into familiar checkouts, powered by existing credit and distributed through trusted financial institutions. At halftime 2025, we’re not building another walled garden. We’re building connective tissue — an open, adaptable layer that strengthens the entire ecosystem. This is the kind of infrastructure the future demands.