Merchants and shoppers around the U.S. are reaping the benefits of Samsung Wallet’s newest feature: an installment payment solution specifically built for in-store retail and powered by Splitit.
The first-of-its-kind installment solution is integrated directly into Samsung Wallet, creating a frictionless in-store checkout experience. Unlike traditional buy-now, pay-later solutions, Splitit’s installment payments are linked to customers’ existing credit cards. Thus, they require no new credit checks while allowing cardholders to earn their credit card rewards and retain purchase protections.
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This seamlessly embedded solution empowers consumers to make a bigger purchase than they would otherwise, allowing full control and visibility into their payment structure. In fact, Splitit anticipates an increase in average order value of 15 to 25 percent, with shoppers checking out more high-value items and building bigger baskets.
How does it work? Once consumers register to activate installments in Samsung Wallet, they can create installment plans on purchases of $50 or more with one click, backed by their eligible Mastercard or Visa credit card. Most notably, the partnership is a win for merchants with no integration or hardware changes on their end — and there’s no incremental fee.
According to research by Pymnts and Splitit, 72 percent of merchants favor card-linked installments over traditional buy-now, pay-later services because of their “simplicity, higher approval rates and greater loyalty to their brand.” With this installment solution, merchants have instant access to millions of consumers who are ready to spend, without having to change their checkout.
Despite digital sales continuing to be a major push, Splitit said it’s unlocking more than $5 trillion of in-store point of sale spending — where more than 80 to 90 percent of purchases still occur. Leveraging Samsung Wallet’s reach, the new installment feature with Splitit will be available across more than 95 percent of U.S. point of sale terminals, ranging from small businesses to major retailers such as Target, Best Buy, Albertsons and Macy’s.
With the rollout of this partnership, Nandan Sheth, chief executive officer of Splitit, told Fairchild Studio that the next phase entails selected VIP merchant partners of Samsung and Splitit actively steering qualified shoppers to their stores through cobranded targeted ad campaigns inside the digital wallet. This will be followed by an omnichannel expansion to enable consumers to experience seamless installments both digitally and in-store.
The partnership reflects a broader industry shift as buy-now, pay-later providers expand their focus into physical retail after initially concentrating on e-commerce.
“Mobile e-commerce and mobile wallets are converging into the next-generation retail experience — frictionless, personalized and embedded,” said Sheth. “We see wallets evolving far beyond payments, becoming intelligent commerce hubs where consumers discover, pay and finance purchases in a single flow. Installment capabilities will be native — not bolted on — giving shoppers the flexibility to pay over time without leaving the checkout flow or re-entering information.”
Splitit said this solution keeps issuers in the transaction flow and adds value for banks bypassed by most buy-now, pay-later services. While currently in its piloting phase in select states, Sheth noted that this rollout will be nationwide, with an expansion into a major European market next on the horizon.
Looking ahead, Splitit is aiming to establish an embedded finance model that benefits both the banks and merchants. This model will scale across devices, global markets and retail channels. The fintech company plans to leverage artificial intelligence-powered personalization within Samsung Wallet to give consumers installment options when they need them.
With the introduction of card-linked installment payments and now a completely embedded solution in Samsung Wallet, Splitit is leading the way to adapt to new customer needs in an age of both online and in-store shopping and global market uncertainty.
“At Splitit, we believe the next leap will be AI-driven — mobile wallets through partners like us using predictive models to understand purchasing patterns, optimize payment options in real time and even proactively surface offers or installment plans based on a consumer’s unique profile. The winners will be those who combine trust, speed and choice, enabling merchants to tap into higher conversion rates and larger basket sizes without adding friction. Mobile wallets will move from being payment utilities to becoming intelligent financial companions — and installments will be at the heart of that transformation,” concluded Sheth.