US Bank has introduced a new credit card designed to provide an alternative to traditional buy now, pay later schemes. The Split Card automatically divides purchases into a three-month payment plan without incurring interest or an annual fee.
This card can be used for shopping both in-store and online wherever Mastercard is accepted. Customers have the option to extend payment plans to six or twelve months for larger purchases by paying a small, fixed monthly fee.
The Split Card carries no APR or annual fee and includes Mastercard World benefits, such as travel, entertainment, shopping, and protection features.
Chris Roncari, head of product and experience for consumer and small business payments at US Bank, notes, “The Split Card combines typical credit card features with unique budgeting controls and an interest-free option. We anticipate it will be especially appealing to Gen Z consumers and others looking for the usability and protections of a credit card alongside the financial consistency of equal monthly payments.”
The Split Card shares similarities with Klarna’s versatile debit card, which allows for both regular spending and installment payments. Within just eleven weeks of its launch in July, more than a million Americans had signed up for the Klarna card.
For US Bank, this new offering complements its existing BNPL program, ExtendPay, which allows consumer and business cardholders to transition eligible transactions into equal monthly payments.