MINNEAPOLIS– U.S. Bank said it has introduced anew kind of credit card that enables automatic no-fee, no interest equal monthly payments on all purchases: the U.S. Bank Split™ World Mastercard®.
According to U.S. Bank, the Split Card introduces a new alternative to traditional BNPL options – a “single solution to manage multiple pay-over-time plans that is backed by a major bank, providing valuable consumer protections and the ability to build credit.”
U.S. Bank further said the Split Card can be used to shop in-store or online everywhere Mastercard is accepted, and every purchase is automatically split into a three-month payment plan with no interest or annual fee. Cardholders can also choose to extend payment plans to six or 12 months for larger purchases for a small, fixed monthly plan fee.
‘Meets Diverse Needs’
“Split Card meets the diverse needs of today’s consumers who are seeking easy and transparent ways to fund purchases of all sizes,” Chris Roncari, head of product and experience for consumer and small business payments at U.S. Bank, said in a statement. “Split Card has elements of a typical card but is far from a typical credit card with its budgeting control and interest-free option. 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.”
How It Works
According to U.S. Bank, a subsidiary of the $695-billion U.S. Bancorp, the Split Card works this way:
- All purchases are automatically split into a three-month payment plan, with no monthly fees and no interest.
- For large purchases of $100 or more, cardholders can also choose to extend the payment plan to six or 12 months for a small, fixed monthly plan fee.
- Cardholders can manage and track each purchase plan with a “simple and transparent” dashboard in the U.S. Bank Mobile App and online banking.
