Puppies do not like to soil in the same area as they sleep in . So by dividing up the crate it will help him to want to hold it and not soil in his sleeping area . He will have accidents but as long as they are cleaned up with an enzyme solution ( like natures miracle ) to get rid of the urine smell he will learn .
I do not like the puppy pads because all that I have seen have a plastic backing , puppies like to chew and I would worry if the puppy ate one and the plastic liner caused a blockage .I have heard of and seen many puppies shred then . Plus the pads are usually treated to give off a smell to attract the puppy to eliminate in the area , that will get them in the habit of soiling in the house , crate or pad .
You can put down some old towels or small blankets in the crate , something inexpensive and washable . Because it will need to be washed often .
Some dogs will soil in the crate and then cover the mess with their blankets , so if this happens then he may have to go without any bedding while being house trained . It may sound mean but it is better then him covering his mess and being comfortable laying in / on it .