U.S. Bank Takes on BNPL Challengers with Installment-Plan Credit Card

Consumers who want to divide payments on purchases into monthly installments without a fee or interest charges can now turn to U.S. Bank, which recently announced a new credit card that offers that option.

The card, which the financial institution calls the U.S. Bank Split World Mastercard, gives cardholders an alternative payment tool that combines features of buy now, pay later (BNPL) programs with the benefits of a traditional credit card.

Credit card issuers that have been losing market share to BNPL providers can use U.S. Bank’s new card as a blueprint for how they can retain customers looking for more payment flexibility.

Buy now, pay later offerings have expanded in popularity in 2025. A recent report shows that monthly spending on BNPL products soared more than 20% from June 2024 to the same month in 2025.

Millennials and members of Gen Z are more likely to use BNPL solutions than other generations. But overall, more than 1 in 4 people in the U.S. say they’re more likely to make a particular purchase if a seller offers BNPL as a payment option, the report revealed.

Chris Roncari, Head of Product and Experience for Consumer and Small Business Payments at U.S. Bank, said in a press release that the Split World Mastercard meets the needs of consumers who want a smooth and transparent way to pay for any size of purchase.

“We expect Split Card will be a top choice for Gen Z consumers, and many others, who desire the broad scale usability, simplicity, and protections of a credit card but also need the financial consistency of equal monthly payments,” Roncari said.

U.S. Bank’s new card may help the company avoid losing purchase volume and revenue to providers of alternative methods of payment. The financial institution is promoting the card at an opportune time as the holiday shopping season kicks into high gear.

Cardholders can use the Split Card wherever a merchant accepts Mastercard. The card automatically splits purchases into three-month payment plans.

But those who want to divide their payment over a longer period can elect to pay their purchase back over six months or one year. Those options come with a fixed monthly fee, and cardholders can only choose to extend payment periods on purchases of $100 or more.

Cardholders can manage the purchase plan they’ve selected through a dashboard accessible via U.S. Bank’s online banking system and within the bank’s app. 

Consumers interested in applying for the Split Card can learn whether they’re preapproved for the product through a portal on the card’s website. U.S. Bank promises to provide a decision on preapprovals in as little as 60 seconds.

For a fixed monthly fee, cardholders can extend payment plans on purchases of $100 or greater to six months or one year.

The card includes benefits that the Mastercard World program offers, but the flexibility that it extends may prove to be its most valuable feature to cardholders. Credit card issuers looking to fend off competitors that offer alternative payment tools may want to consider how they can best incorporate payment flexibility into their products. 

Roncari told us that the Split Card is one more way that U.S. Bank is creating solutions to meet customer needs.

“Split Card builds on the success we’ve had with ExtendPay, a capability currently available that allows our consumer and business cardholders to split large purchases into fixed monthly payments,” Roncari said.