With the launch of this new service, financial institutions wishing to provide installment plans to current clients at the merchant checkout can now access Splitit's merchant network.

According to Splitit, banks have made moves to enter the rapidly expanding BNPL sector worldwide, but they have frequently found it difficult to activate the option during the purchase process and have instead concentrated on post-purchase instalment plans.

This is expected to change with the introduction of FI-PayLater, which will allow banks to offer their current clients installment plans right at checkout, so enabling them to become major players in the "during purchase" BNPL industry.

With the use of FI-PayLater's turnkey capabilities, FIs can increase their fee income from current connections. Additionally, there are several ways to integrate, such as through issuer processors, payment networks, or direct links.

According to Splitit CEO Nandan Sheth, "We enable FIs to become relevant within the 'during purchase' instalment market by enabling them to present compelling instalment offers to their customers at the merchant checkout."

Furthermore, in the context of regulated interchange, granting issuers the capacity to pre-fund the merchants and charge the customer will generate new fee income. We are enabling financial institutions (FIs) to leverage their innate benefits of size, credibility, and loan availability in the installment economy."