Splitit, an international payments company, announced a multi-year deal with Mastercard to offer its installment payments system, according to a press release emailed to Retail Dive. Splitit allows customers to pay for purchases with an existing debit or credit card by splitting the cost into interest and fee-free monthly payments.
Splitit will integrate with Mastercard's technology to provide its services at checkout both in stores and online.
The two firms will start pilot programs in three markets before launching internationally, according to the statement. The companies will also develop installment and other related products together.
The race for market share in the installment payments market is heating up. In January, Splitit partnered with Stripe to integrate with Stripe Connect. Now, the payment company's partnership with Mastercard would connect it with merchants across the card issuer's network of 210 countries and territories.
"This is a fantastic way to broaden the distribution of our solution, leveraging Mastercard's incredible global reach, and build out a range of installment services," Splitit CEO Brad Paterson said in a statement. "It's a major plank in our strategy to grow through strategic partnerships to make Splitit a household name."
As Splitit aligns itself with Mastercard, other installment payments providers are gaining ground, too. Klarna, which partnered with brands like Toms and Asos, recently announced that it had reached 7.85 million customers and introduced a loyalty incentive program. Meanwhile, Shopify debuted "Shop Pay Installments" and other money management features in May.
"This partnership with Splitit will help to drive higher transaction volumes for businesses and deliver budgeting solutions in the moment consumers are seeking them," Zahir Khoja, executive vice president of global merchant solutions and partnerships at Mastercard, said in a statement. "Consumers walk away with payment options and businesses get paid in full, building consumer loyalty."