DXC and Splitit Partner to Revolutionize Payment Flexibility for Over 300 Million Bank Accounts
In a significant move towards transforming the payment landscape for consumers, DXC Technology, a recognized leader on the Fortune 500 list, has joined forces with Splitit, a pioneer in embedded installment payments. The strategic partnership aims to enable more than 300 million bank account holders to access effortless installment payment options during their purchasing processes.
This collaboration is rooted in the use of Splitit's innovative AI technology that personalizes payment offers dynamically for each user. At its core, the solution derives from DXC's Hogan platform, which already supports a massive ecosystem of bank accounts and significant deposits across various financial institutions.
For years, banks have faced increasing competition from Buy Now, Pay Later (BNPL) services that offer easy financing options. These services often lead to disintermediation, leaving banks unable to serve their established customer base effectively. With the introduction of this new partnership, DXC and Splitit aim to bring banks back into the forefront of payment solutions by allowing them to offer branded installment options directly to consumers at the point of sale, whether online or in physical stores.
Among the many benefits, the key highlights of the DXC and Splitit partnership include the elimination of the need for third-party accounts, the broad acceptance of debit cards, and the introduction of a system that enables financial institutions to provide customized lending options directly. This not only helps consumers take greater advantage of installment payments but also allows banks to explore new revenue streams derived from installment plan fees.
Sandeep Bhanote, the Senior Vice President and Global Head of Financial Services at DXC, emphasized the partnership's goal of empowering both issuers and consumers. "This partnership with Splitit shows how that foundation can now be used to create new revenue streams at the point of sale. By normalizing installment capabilities across existing accounts, we're allowing issuers to modernize their offerings without replacing their core," he stated.
Moreover, this software solution enables participation from all consumers who possess bank accounts or debit cards, allowing greater demographic inclusivity. This focus on debit-first solutions is particularly appealing to younger generations—specifically Gen Z and millennials—who prefer flexible payment methods while using their existing financial products.
The market for installment payment solutions is poised for substantial growth, projected to escalate from $2.23 billion in 2024 to $3.44 billion by 2031. A notable aspect of this partnership is the ability to effortlessly integrate card-linked installments into habitual retail buying behaviors without adding complexity for merchants or consumers alike.
With the rising affinity for simpler and more efficient financing options, Splitit and DXC are ready to redefine what financial flexibility means. As noted by Nandan Sheth, CEO of Splitit, "We're bringing installments directly into existing bank accounts or issued debit cards. With DXC's access to over 300 million bank accounts through its core banking platform, our joint technology provides a seamless, low-lift way to automatically deliver installment functionality to existing customers."
The impact of this partnership is expected to resonate throughout the financial industry, giving traditional banks a competitive edge against BNPL services while simultaneously providing consumers with diverse options for manageable and trustworthy payment experiences. As digital payments continue their meteoric rise, the collaboration between DXC Technology and Splitit represents a timely and modern evolution in the financial services landscape, aiming to better serve both banks and their customers alike.
This collaboration is rooted in the use of Splitit's innovative AI technology that personalizes payment offers dynamically for each user. At its core, the solution derives from DXC's Hogan platform, which already supports a massive ecosystem of bank accounts and significant deposits across various financial institutions.
Reshaping Traditional Banking
For years, banks have faced increasing competition from Buy Now, Pay Later (BNPL) services that offer easy financing options. These services often lead to disintermediation, leaving banks unable to serve their established customer base effectively. With the introduction of this new partnership, DXC and Splitit aim to bring banks back into the forefront of payment solutions by allowing them to offer branded installment options directly to consumers at the point of sale, whether online or in physical stores.
Among the many benefits, the key highlights of the DXC and Splitit partnership include the elimination of the need for third-party accounts, the broad acceptance of debit cards, and the introduction of a system that enables financial institutions to provide customized lending options directly. This not only helps consumers take greater advantage of installment payments but also allows banks to explore new revenue streams derived from installment plan fees.
Empowering Consumers and Banks
Sandeep Bhanote, the Senior Vice President and Global Head of Financial Services at DXC, emphasized the partnership's goal of empowering both issuers and consumers. "This partnership with Splitit shows how that foundation can now be used to create new revenue streams at the point of sale. By normalizing installment capabilities across existing accounts, we're allowing issuers to modernize their offerings without replacing their core," he stated.
Moreover, this software solution enables participation from all consumers who possess bank accounts or debit cards, allowing greater demographic inclusivity. This focus on debit-first solutions is particularly appealing to younger generations—specifically Gen Z and millennials—who prefer flexible payment methods while using their existing financial products.
The Future of Payment Installments
The market for installment payment solutions is poised for substantial growth, projected to escalate from $2.23 billion in 2024 to $3.44 billion by 2031. A notable aspect of this partnership is the ability to effortlessly integrate card-linked installments into habitual retail buying behaviors without adding complexity for merchants or consumers alike.
With the rising affinity for simpler and more efficient financing options, Splitit and DXC are ready to redefine what financial flexibility means. As noted by Nandan Sheth, CEO of Splitit, "We're bringing installments directly into existing bank accounts or issued debit cards. With DXC's access to over 300 million bank accounts through its core banking platform, our joint technology provides a seamless, low-lift way to automatically deliver installment functionality to existing customers."
The impact of this partnership is expected to resonate throughout the financial industry, giving traditional banks a competitive edge against BNPL services while simultaneously providing consumers with diverse options for manageable and trustworthy payment experiences. As digital payments continue their meteoric rise, the collaboration between DXC Technology and Splitit represents a timely and modern evolution in the financial services landscape, aiming to better serve both banks and their customers alike.
Topics Financial Services & Investing）
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