myPOS blog Tips

Split Payments – Definition and how you can implement them

New trends gain popularity as the UK payments industry grows and adapt to modern financial technology and rising consumer needs and expectations.

Split payments are one such innovation. Designed to offer convenience to shoppers and a range of business opportunities, they are turning into a preferred checkout option.

In the following sections, we explore this topic in detail. We assess the benefits and challenges of a split payment, dive into the steps to adopting this payment option, and more.

What is the meaning of split payments?

A split payment is the process of accepting multiple payment methods to conduct a single transaction. 

For instance, a customer may use more than one card to purchase a pair of shoes online. At the same time, when shopping for products or services in-store, consumers can settle the payment via a combination of cash and card

It’s key to note that split payments are not limited to a single user. They can also be used by a group of friends who want to split a restaurant bill or a rent payment. 

In the payment processing realm, split payments can also take the form of deferred payments, where the total cost of the purchase is divided into separate instalments. These instalments are usually formed into monthly payments that are paid off over an agreed period. 

In summary, split payments can be made by:

  • A single person using different payment methods;
  • Multiple people using the same or diverse payment methods;
  • A single person on monthly instalments;
  • Multiple people over periods.

How do you accept a split payment and how do you implement it?

If you’re planning to implement split payments into your business, it’s essential to select a payment gateway that supports split payment methods. 

Below, we explore the most popular methods of accepting split payments and the necessary steps to implement this rising popularity option.

Methods of accepting split payments

Depending on the payment methods supported by your payment provider, you could offer a combination of the various methods for split payments.

They can be as follows:

  • Mobile wallets (digital wallets);
  • Bank transfers;
  • Card networks;
  • Reward cards;
  • Vouchers;
  • Gift cards;
  • Store credit cards;
  • BNPL (Buy Now, Pay Later).

Steps to implementing split payments

To implement split payments, you must follow three key steps – verification, refunds, and integration


As noted above, split payments permit consumers to use multiple cards to complete a purchase. 

However, for the business, it means that additional verification will be required. It will confirm that the billing addresses provided match with the card issuer. 

A range of Address Verification Services (AVSt) can handle this process, and selecting a reliable one will guarantee efficiency. Make sure to partner with a provider that offers reliable verification methods.


Refunds shape another part of the e-commerce world that becomes slightly more complicated when combined with split payments. 

Ensure your business is prepared for returns and refunds. Check that you have solutions in place to successfully send back funds to the same payment methods used during purchase. 

Also, acknowledge the fact that it is widespread for shoppers to require extra help and support when they deal with split payment refunds.


Last but not least, ensure that you have the necessary integrations with providers to support a variety of payment methods. 

It will not only impact your partnerships, potentially leading to new integration requirements, but it will also include additional compliance layers in your processes.

Why do customers split payments

Why do customers split payments?

As businesses in the UK gradually adopt split payments as a payment option, more and more customers are taking advantage of this convenient alternative.

In their essence, split payments provide unmatched convenience for shoppers, making them a preferred option today.

Customers often choose to split payments with friends or through instalments for several reasons:

  • Ability to purchase expensive goods – When people use split payments, they can buy products or services that are otherwise unaffordable via a single transaction. At the same time, the acquisition will not negatively impact the financial stability of the shopper as the sent funds can be spread across time. 
  • Flexibility to pay in the most convenient way – Many consumers select split payments if they don’t have enough funds in a single card or have insufficient cash in-store. When they cash with credit and debit cards or a gift card with cash, customers can shop conveniently, with fewer barriers. 
  • The power to split payments with friends and family – No matter whether individuals share a rental flat or often dine together paying a shared bill, split payments allow everyone to participate equally or in agreed potions to the payment. It eliminated the need for complicated calculations, sending or receiving funds via personal accounts, or exchanging cash between group members. 
  • No fees – While most other payment methods are associated with transaction fees for the customer, most split payment providers only charge merchants or retailers. The fee that will be accumulated for the merchant is based on the transaction type, security features, and other factors. 

Depending on the shopping patterns and specific situation, there could be additional reasons for consumers to prefer to split payments rather than cover the whole amount with a single payment method when they make a purchase.

Key benefits of split payments

The growing popularity of peer-to-peer payment apps in the UK naturally reflects the preference towards split payments. 

This preference comes from the diverse benefits associated with this form of payment.

Below, we explore the main advantages provided by split payments for both customers and businesses. 

Reduced cart abandonment 

E-commerce split payments help merchants reduce cart abandonment rates, increase sales, and achieve better business performance. 

Providing customers with the ability to split payment and use different payment methods for the same purchase means that users can enjoy affordability, encouraging them to complete the checkout process. 

They can also avoid exceeding daily spending limits on credit or debit cards, minimise financial risk, and enable them to buy higher-ticket products that may otherwise be inaccessible. 

Increased customer loyalty

Businesses boost customer loyalty when they empower customers with the financial flexibility that digital split payments provide. 

Offering a more comprehensive range of payment options like digital split payments shows that you fully understand customer needs and explore every avenue to cater to modern demands. 


Splitting payments creates an extra layer of convenience both for customers and businesses. 

For example, for users dining with friends or sharing a household, split payments enable a quick and easy way to settle a split transaction, where different parties participate in the payment. 

On the other hand, well-developed e-commerce marketplaces that work with multiple sellers can use split payments to make accurate payments when a shopper buys items from multiple providers in a single order.


Split payment transactions are considered a safe and secure way to spend money online as they’re encrypted by various fraud detection and prevention measures.

Elimination of missed payments

In the long run, offering split payments, allows businesses to minimise missed payments and provides the flexibility that encourages more users to transform from visitors to customers.

Are there any challenges to accepting split payments?

Are there any challenges to accepting split payments?

Just like all other payment forms, there are a few potential challenges related to split payments that must be addressed.

Payment processing 

Split payments inevitably make payment processing more complex compared to traditional payment models. 

Additional processing steps are required to split the full payment amount into separate instalments or handle multiple transactions. 

This obstacle can be solved with integrations with third-party service providers or advanced payment processing systems. 

Integration challenges

Adding split payment functionality into existing platforms, payment gateways, or point-of-sale solutions can also create difficulties in cases where the infrastructure doesn’t fully support this type of payments. 

To avoid such a scenario, it’s recommended to build your online business with split payments in mind from the start. 

For example, various solutions can enable online shops to provide this payment method easily and conveniently. 

Cash flow impacts

Businesses that provide split payments as an option to consumers must also keep in mind the impact this option will have on their cash flow and financial situation.

It is essential when split payments refer to instalment plans. 

In this case, businesses must carefully analyse the implications of transaction fees, revenue delays, and possibly interest charges – all factors that will dictate the profitability and sustainability of the company.

Frequently Asked Questions

Yes, transactions under the form of split payments are considered secure as most platforms that support this payment method are PCI DSS Level 1 certified, meaning that they abide by security standards and protocols.

No, the customer can split any amount of the payment they need. The sum the user chooses not to split is left in their account.

Some of the most popular payment methods combined in split payments include debit cards, credit cards, digital wallets, rewards cards, bank transfers, vouchers, and others. When implementing split payments into your business, ensure that the solution supports diverse payment methods to provide convenience and flexibility to your shoppers.

Related posts