What does ‘Split payments’ refer to in consumer finance?
‘Split payments’ in the field of consumer finance refers to the action of applying installment payments to credit or possibly debit card. This involves the cost of the purchase going onto the credit card at the point of purchase, with fixed monthly payments being paid by the customer.
The concept has been popular in countries like Brazil and Israel but is relatively new in the US, although it has been gaining traction through Splitit, a consumer finance platform that applies installment payments to most credit cards.
This method of installment payments differs from that on offer by solutions such as Jifiti’s, where a separate credit line to your usual credit card is utilized and doesn’t even require a credit card which is important since only one in three millennials own a credit card.