The news: Bank of America introduced Custom Pay Plan, a credit card-linked installment plan, per a press release.

• Members will be able to convert qualifying purchases into structured payment plans through their mobile banking app or online banking portal.
• Repayment periods will range from 3 to 18 months. 
• Members can still earn rewards on converted transactions. 

Why this matters: Card-linked installments give incumbents a chance to connect with younger consumers and high-earning US adults. 

• 33.4 million US millennials and Gen Zers will use BNPL in 2026, compared with 9.5 million baby boomers, per our forecast.
• 27.5 million US adults who make over $125,000 will do the same—a larger share than any other income group.

Installments also offer a unique payment opportunity to issuers that serve better-off consumers. These shoppers can use Custom Pay Plan to finance bigger-ticket items that are psychologically painful to pay off in one statement cycle but are too small to warrant applying for a personal loan. 

This keeps more volume going through issuers’ cards—plus added fees. We forecast that BNPL users will spend $1,546.69 this year—up 16.7% YoY. 

Implications for issuers: Demand for card-linked installment is ample across all generations, financial situations, and incomes.

Banks can extend their lead over fintech peers by diversifying their card-linked portfolios to include debit options like Chase’s Pay in 4 debt-linked installments.