Mastercard Expands Installment Offerings Through Global Partnerships, Empowers More Consumers to Choose When to Pay with Pre-...
September 02 2020 - 8:00AM
Business Wire
- TSYS, a Global Payments company, and Mastercard partner to
offer highly configurable, issuer-driven installment options
providing consumer payment flexibility
- Consumer choice at the forefront of global merchant-based
installment offerings across Vyze, and other global partners
The global pandemic is driving consumers to seek flexible
payment options while issuers and merchants alike want to provide
cardholders with choice, control and simplicity at checkout. To
address this, Mastercard today announced a new partnership with
TSYS, a Global Payments company, that will enable consumers to use
their Mastercard to split transactions into installments before,
during or after checkout. Through this partnership, TSYS is the
first processor to deliver installment capabilities to issuers in
order to provide seamless payments experiences to their
cardholders, enhancing Mastercard’s buy-now-pay-later ecosystem.
This new partnership complements Mastercard’s comprehensive suite
of merchant offerings through API-based solutions, commercial
partnerships, and acquisitions across the globe.
“Adding the installment lending function to a bank card is
suitable for all parties in the transaction. The consumer has a
discrete transaction, separate from their general purchasing.
Merchants get to close the sale, and similar to credit card usage,
have an opportunity to upsell the customer. The issuing bank
benefits with increased spending,” says Brian Riley, director of
the credit practice at Mercator Advisory Group.
Consumers Want Installment Options for Credit Card
Purchases
Nearly three quarters of consumers interested in installments
prefer the feature be added to an existing card, according to
Mastercard research.1 The new partnership with TSYS will enable
consumers in North America to use their Mastercard to split
transactions into installments before, during and after a
purchase.
“This new collaboration with Mastercard gives our issuing
clients the ability to offer best-in-class installment payment
experiences to their cardholders, while enabling consumers to
choose when they want to pay,” said Gaylon Jowers, President, TSYS
Issuer Solutions and Senior Executive Vice President of Global
Payments, Inc. “Our installment solution addresses the growing
consumer demand for payment optionality, further solidifying our
position as a leading provider of technology solutions across the
globe.”
Mastercard Buy-Now-Pay-Later Suite of Offerings Delivers
Consumer Choice
Three out of four Americans who have tried installment plans for
the first time during the pandemic plan to continue using them
after it is over, according to Mastercard research, indicating the
desire for solutions that empower consumers is paramount.2 The
comprehensive suite of Mastercard buy-now-pay-later offerings
includes:
- Pre-Sale: Consumers can pre-determine to spread payments
over time for specified dollar thresholds and spend categories -
such as home improvement purchases over $500 – or can arrange
automatic installments for chosen retailers.
- Point of Sale: Consumers can receive notifications while
shopping, enabling them to purchase goods on an installment plan
integrated with their card. As well, Mastercard's near real-time
capabilities allow cardholders to move their purchase to an
installment plan moments after the purchase is complete without the
lift of merchant integration.
- Post-Sale: Shoppers may choose an installment plan
presented by their issuing bank after a purchase is complete,
enabled through the new TSYS partnership using the TSYS Digital
Engagement Platform with easy-to-use APIs.
"Today’s consumer is looking for increased choice in how they
manage their finances and spend while still demanding a seamless,
secure checkout experience whether in store or online,” said Jess
Turner, Executive Vice President, North America Product and
Innovation for Mastercard. "Our work with TSYS, in conjunction with
our wider point-of-sale financing ecosystem partners, helps improve
the consumer checkout experience and enables issuers and merchants
to benefit from increased consumer acquisition, loyalty and
approval rates while decreasing cart abandonment.”
Financing Options at Checkout In Store and Online Drive
Merchant Installment Offerings
Mastercard advanced its merchant-centric flexible financing
capabilities with the acquisition of Vyze last year, and
with a recently expanded roster of lending partners, including Fly
Now Pay Later and Quadpay, the company can connect merchants with
multiple lenders, allowing merchants to offer their customers a
wide range of financing options at checkout in store and online. In
the United States, Freemotion, a commercial fitness manufacturer,
recently launched Vyze with its new line of equipment, to provide
financing for consumers interested in purchasing at-home gyms and
workouts during the pandemic. And through a partnership with buy
now, pay later partner Jifiti, Mastercard accepting
merchants in North America and Europe can offer instant financing
to customers through a digital private label prepaid card at
checkout.
Choice, Control and Simplicity Around the World
As installments take hold across the globe, Mastercard is
delivering customized, in-market solutions that meet the unique
needs of shoppers in every region. This includes a global
partnership with Splitit in multiple markets around the
world to deliver a scalable way to enable merchants to deliver card
installments at checkout and online, to work in Europe where
Mastercard and Divido have partnered to provide instant
access to credit through a paperless and omnichannel
experience.
In Asia Pacific, Pine Labs and Mastercard are
collaborating to offer capabilities to the South Asia, India and
Middle East markets, enabling 150,000 merchants across about
450,000 network points to deliver an extensive range of card and
real-time payments-based installment options.
Mastercard is creating a future where payments keep pace with
the way we live, work and do business, accelerated by the rapid
transition to digital solutions and offerings. As more people enter
the financial mainstream, money management tools and solutions must
be fit for purpose – inclusive for all, digitally driven and built
on a foundation of security.
Note to Editors
[1] Incite Installment Research – April 2020 [2] Harris: Digital
Study, July 2020
About Mastercard (NYSE: MA), www.mastercard.com
Mastercard is a global technology company in the payments
industry. Our mission is to connect and power an inclusive, digital
economy that benefits everyone, everywhere by making transactions
safe, simple, smart and accessible. Using secure data and networks,
partnerships and passion, our innovations and solutions help
individuals, financial institutions, governments and businesses
realize their greatest potential. Our decency quotient, or DQ,
drives our culture and everything we do inside and outside of our
company. With connections across more than 210 countries and
territories, we are building a sustainable world that unlocks
priceless possibilities for all.
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version on businesswire.com: https://www.businesswire.com/news/home/20200902005239/en/
Sarah Ely North America Communications +1 (914)
249-6714 | Sarah.Ely@mastercard.com
Katie Priebe Global Communications +1 (914)
707-9822 | Katie.Priebe@mastercard.com
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