The news: U.S. Bank launched the Split World Mastercard, a credit card that puts every transaction on an installment plan, per a press release.

The card builds on U.S. Bank’s card-linked installment offering, ExtendPay. Every purchase on the card is automatically split into a three-month payment plan with no fees or interest. Cardholders can extend larger purchases ($100 or more) into six- or 12-month payment plans for a fixed monthly fee.

The card has no annual fee or APR.

Why U.S. Bank is launching it: Card-linked installments combine what consumers love about buy now, pay later (BNPL) with the convenience, trust, and security of a card transaction. This is partly why these offerings rank so high with customers: Card-linked installment plans got higher customer-satisfaction scores than fintech BNPL plans, per the J.D. Power 2025 US Buy Now Pay Later Satisfaction Study.

The Split Card also builds on the popularity of BNPL fintech cards.

• Klarna offers both a credit card and debit card that let cardholders either pay in full or in installments. The Klarna debit card crossed 1 million signups in the US after just 11 weeks.
• Affirm’s debit card has been a major growth driver. The Affirm Card’s gross merchandise volume (GMV) shot up 132% YoY in its Q4 FY 2024 earnings (ended June 30).

Our take: U.S. Bank wants to capitalize on consumer demand for both card-linked installments and BNPL cards. It’s a play specifically for Gen Zers, who tend to gravitate toward installments. These younger consumers can also use the card as a credit-building tool, a sought-after feature.

But the Split Card may be a tough sell to prospects.

• Unlike BNPL fintech debit cards, this card will require consumers to pass a credit check, and some consumers may not qualify or want a hard credit check (which is why many use BNPL in the first place).
• Consumers with higher credit scores may not be interested in the card because U.S. Bank’s traditional credit cards already give them the option to pay in full, over time with interest, or via ExtendPay.
• The Split Card’s undisclosed fee for longer-term plans may also be a turnoff for consumers who prioritize transparent terms before they complete a transaction.

Given the Split Card only offers one way to pay, it will limit its adoption and likely the amount of spend that goes on the card, as cardholders may not want every purchase—particularly small ones —to be paid via installments.