Splitit & DXC Empower Banks to Reclaim BNPL Market Share

The financial technology landscape is in constant flux, with innovations frequently reshaping traditional banking paradigms. Among these, Buy Now, Pay Later (BNPL) solutions have emerged as a significant force, capturing a substantial portion of the consumer credit market. For a considerable period, third-party BNPL providers disintermediated traditional banks, offering instant transactional lending at the point of sale. However, a recent strategic alliance between Splitit, a leading BNPL solutions provider, and DXC Technology, a global IT services and consulting company, signals a pivotal shift, empowering banks to reassert their dominance in this evolving sector. This partnership aims to seamlessly integrate AI-powered, card-linked installment payments directly into banks' existing infrastructure, enabling financial institutions to compete more effectively and meet contemporary consumer demands for flexible payment options.

A Strategic Alliance: Splitit and DXC Technology

The core of this groundbreaking collaboration lies in the integration of Splitit's innovative installment payment technology with DXC Technology's robust Hogan core banking platform. The Hogan platform is a cornerstone for many major financial institutions worldwide, currently supporting over 300 million accounts and managing an astounding $5 trillion in deposits across more than 40 banks. This extensive reach provides an unparalleled conduit for introducing sophisticated BNPL capabilities directly to a massive existing customer base.

Through this integration, banks leveraging the Hogan platform will gain the ability to offer personalized, AI-driven installment plans. These plans can be presented to consumers at the checkout stage, whether online or in-person, or even post-purchase. Crucially, these offerings will be linked to the customers' existing debit or credit cards and bank accounts, eliminating the friction associated with opening new accounts or applying for new credit lines. This strategic move not only modernizes the banks' service portfolio but also capitalizes on the trust consumers already place in their existing financial relationships.

Empowering Financial Institutions to Compete

Overcoming BNPL Disintermediation

For years, the rise of standalone BNPL providers presented a challenge to traditional banks, as these fintechs captured transactional lending opportunities directly at the merchant checkout. This partnership directly addresses this issue by enabling banks to embed installment payment functionalities within their own branded ecosystems. By doing so, financial institutions can directly compete with third-party BNPL services, offering comparable or even superior flexibility and user experience.

Flexibility and Customer Retention

One of the significant advantages for DXC's bank clients is the inherent flexibility provided by the Splitit partnership. Banks will have the option to either originate the installment loans directly on their own books, thereby retaining full control over the lending process and associated revenue streams, or to have Splitit originate the installments. This choice allows banks to align the BNPL offering with their existing risk management frameworks and strategic objectives. Furthermore, by integrating these capabilities into their traditional banking infrastructure, banks can modernize their offerings without the costly and complex undertaking of replacing their core systems. This approach not only helps in retaining existing customer relationships but also positions them to attract newer, younger demographics who prioritize flexible payment solutions.

As Nandan Sheth, CEO of Splitit, aptly notes, "This partnership resets the playing field." He emphasizes that by bringing installments directly into existing bank accounts or issued debit cards, financial institutions can regain control of customer relationships and enhance their competitiveness. The seamless, low-lift way to automatically deliver installment functionality to existing customers through DXC's platform is a powerful tool for customer acquisition and retention.

Technical Integration and Operational Advantages

The technical integration promises a smooth operational experience for both banks and their customers. Banks will be able to deploy branded installment offers that appear natively within their online banking portals or directly at the merchant checkout. This native integration ensures a consistent brand experience and builds greater trust with consumers. The ability to serve customers who prefer to pay with debit cards further expands the market reach, catering to a broader segment of the population that might otherwise be overlooked by traditional credit-focused BNPL offerings.

Sandeep Bhanote, DXC Global Head and General Manager of Financial Services, highlights the significance of this collaboration, stating that it demonstrates how the Hogan foundation can be utilized to generate new revenue streams at the point of sale. He underscores that "by normalizing installment capabilities across existing accounts, we're enabling issuers to modernize their offerings without replacing their core—and empowering consumers with flexible payments that use the cards they already trust." This sentiment encapsulates the strategic foresight behind the partnership: leveraging existing infrastructure to innovate rather than necessitating a complete overhaul.

The Evolving BNPL Landscape and Splitit's Vision

Despite earlier discussions suggesting a potential decline in BNPL trends, the market data indicates robust growth. The installment payment solutions market is projected to expand significantly, from $2.23 billion in 2024 to an estimated $3.44 billion by 2031. This growth is further supported by merchant preferences, with 72% reportedly favoring card-linked installments due to their simplicity and broader reach. This context underscores the timeliness and strategic importance of the Splitit-DXC partnership.

Splitit, founded in 2012, has a dynamic history, including going public in 2019 and subsequently returning to private ownership in 2023 following an acquisition by Motive Partners. The company remains committed to simplifying flexible payments, evidenced by its recent launch of the Agentic Commerce Partner Program. This initiative is designed to enable autonomous shopping agents to execute payments using card-linked installments, signaling Splitit's continued innovation in the evolving payment ecosystem.

Conclusion: A New Era for Banking and BNPL

The collaboration between Splitit and DXC Technology represents more than just a new product offering; it signifies a strategic pivot in the competition for market share within the BNPL sector. By enabling banks to embed installment functionality directly into existing cards and core banking systems, this partnership empowers financial institutions to compete on flexibility and user experience without ceding customer relationships to third-party fintechs. As the BNPL market continues its upward trajectory, the next wave of innovation will not solely be driven by new entrants, but significantly by how legacy infrastructure adapts and evolves to meet the constantly changing expectations of consumers. This alliance ensures that banks remain central to this financial evolution, offering modern, convenient, and trusted payment solutions to their vast customer bases.