What is Buy Over Time?

Buy Over Time is a flexible payment financing solution that allows consumers and businesses to split purchases into multiple installments rather than paying the full amount upfront. This financing model encompasses various structures including Buy Now Pay Later, installment loans, and deferred payment plans that can be offered at the point of sale or through direct-to-customer digital lending channels, such as the bank’s app or website. Financial institutions use Buy Over Time solutions to provide credit at the moment borrowers encounter a purchasing need, whether in-store, online, or through embedded checkout experiences.

Buy Over Time financing addresses a fundamental market need by making larger purchases accessible while helping lenders expand their customer base and increase transaction volumes.

What are the primary benefits of offering Buy Over Time financing for financial institutions?

Buy Over Time financing delivers measurable commercial advantages for banks and lenders seeking to grow their lending portfolios. More than a quarter of U.S. consumers have used these services with usage particularly high among consumers aged 16 to 24 at 41 percent and those aged 25 to 34 at 39 percent. Financial institutions implementing Buy Now Pay Later on debit cards see average monthly purchase volume increase from $85 to $115 among active users, representing a 35 percent spending lift. Analysis shows these customers also use their debit cards more frequently once the flexible payment option is introduced, and the average transaction size increases, indicating consumers make higher value purchases when installment options are available. Banks launching Buy Over Time programs report that over 80 percent of users return to their institution’s program year over year, with a 34 percent increase in transaction volume compared to the previous year.

How are banks integrating Buy Over Time into their card programs?

Banks are increasingly incorporating Buy Over Time functionality directly into debit and credit card programs to compete with fintech providers and retain customer relationships. In 2025, the number of institutions adopting Buy Now Pay Later for debit cards tripled compared to the previous year, reflecting accelerated adoption driven by competitive pressure. PYMNTS research indicates that banks now face urgency to innovate as consumers embrace flexible repayment options and new digital channels, with debit becoming the foundation for innovations such as salary linked loans, flex credentials, and installments repackaged inside familiar payment experiences. Financial institutions are deploying sidecar platforms that sit alongside legacy systems rather than replace them, allowing rapid deployment of Buy Over Time capabilities without waiting for multi-year infrastructure projects. This approach lets smaller banks and credit unions compete with digital-only players who have set new expectations for seamless digital repayment journeys, while maintaining control of both the transaction and repayment relationship.

What implementation challenges do lenders face when launching Buy Over Time programs?

Launching Buy Over Time financing presents operational and technical complexities that financial institutions must address systematically. Integration with existing core banking systems and third-party merchant environments creates significant technical lift, particularly when lenders aim to offer omnichannel experiences across online, in store, and call center touchpoints. Banks launching these programs need orchestration capabilities to connect decisioning engines, payment gateways, fraud prevention tools, and servicing systems into cohesive borrower experiences. Smaller institutions, like community banks and credit unions in the U.S., feel this pressure most acutely because they lack the resources of national providers yet are held to the same consumer expectations, making modernization not optional but essential to remaining relevant.

How is embedded Buy Over Time financing reshaping lending distribution in 2026?

Embedded Buy Over Time financing is fundamentally changing how financial institutions distribute lending products as buyers demand seamless financing experiences that match the digital workflows they use for other operations. Banks are moving credit products directly into business software, procurement workflows, and merchant checkout environments rather than forcing buyers to navigate separate loan application processes. Financial institutions that successfully embed lending into contexts where consumers and businesses make purchasing decisions capture transactions at the exact moment credit needs arise, making embedded distribution a strategic imperative rather than an optional channel for market share.

How does Jifiti enable banks to launch and scale Buy Over Time programs?

Jifiti provides financial institutions with a white labeled, modular platform specifically designed to digitize and embed Buy Over Time financing across any channel or borrower touchpoint. The platform supports multiple financing structures including installment loans, lines of credit, and split payment options under a single integration, allowing banks to offer flexible payment solutions without building separate technology stacks for each product type. Jifiti’s orchestration layer connects with existing core banking systems, fraud prevention tools, and payment gateways, eliminating the need for costly system replacements while enabling rapid deployment to merchant partners and digital channels. Financial institutions using Jifiti can launch Buy Over Time programs in months rather than years, scaling across online checkouts, in store point-of-sale systems, call centers, and embedded enterprise procurement platforms through standardized integrations that reduce merchant onboarding friction.

Key Takeaways

• Embedded distribution strategies are becoming essential as 90 percent of U.S. adults hold debit cards and major retailers launch their own flexible payment partnerships, forcing traditional lenders to modernize or risk losing customers at the point of purchase.
• Buy Over Time financing adoption tripled among financial institutions in 2025, driven by competitive pressure from fintechs and consumer demand for flexible payment options embedded directly into purchasing workflows.
• Successful implementation requires addressing technical integration challenges, managing elevated delinquency rates of 34 to 41 percent, and deploying sidecar platforms that enable rapid deployment without replacing core systems.