Mastercard Installments BNPL program to come to
market in the U.S., Australia and the UK; Enables consumers to
access this increasingly popular form of payment across its vast
global acceptance network
- New Buy Now, Pay Later (BNPL) program gives consumers a
flexible, ubiquitous way to pay online and in-store through equal,
interest-free installments – an additional choice to debit, credit
or prepaid cards.
- Mastercard Installments enables banks, lenders, fintechs and
wallets the ability to offer BNPL experiences at merchants with
flexibility across the entire acceptance network.
- Seamless integration into Mastercard’s trusted network enables
merchants to quickly offer secure BNPL solutions backed by the
security and peace of mind that comes with Mastercard.
- Mastercard Installments offers comprehensive consumer
protections with respect to responsible data use and fee
transparency.
- Mastercard to work with Barclays US, Fifth Third, FIS, Galileo,
Huntington, Marqeta, SoFi, and Synchrony in the U.S., and with
Qantas Loyalty and Latitude in Australia on the BNPL program.
To meet growing consumer demand for flexible, digital-first
payment options, Mastercard today unveiled Mastercard Installments,
a unique and innovative Buy Now, Pay Later (BNPL) program that
delivers greater choice at checkout, both in-store and online.
Mastercard Installments uses the power of the company’s trusted
network to make BNPL available to millions of consumers and
merchants worldwide. It enables banks, lenders, fintechs, and
wallets to offer a variety of flexible installment options to
consumers - including a zero percent interest, pay-in-four model –
without onerous integration into the merchant infrastructure,
allowing them to quickly offer secure and competitive BNPL
experiences at scale.
Mastercard Installments enables consumers to digitally access
BNPL offers, either pre-approved through their lender’s mobile
banking app or through instant approval during checkout.
Pre-approved installments can be used directly on a merchant’s
website, and can be stored in digital wallets including
Click-to-Pay, to then be used online or in-store wherever
Mastercard is accepted. Instant approvals during checkout will be
available through Click-to-Pay shortly after launch. Consumers will
have full transparency on lender practices up-front during the
approval process, and unlike most current BNPL offerings, consumers
will continue to benefit from zero liability fraud protection, the
ability to challenge unrecognized charges, and the peace of mind
that comes with Mastercard’s acceptance footprint.
“At the heart of it, payments come down to choice – and people
want more from their money with greater flexibility and control in
how they pay and where they shop,” said Craig Vosburg, Chief
Product Officer, Mastercard. “Mastercard Installments has been
built on our guiding principles to protect consumers and enable
choice without sacrificing trust and security. It is a
digital-focused way to pay today and tomorrow, delivered through
consumer’s most trusted relationships with their banks and other
lenders, at merchants of their choice.”
Mastercard Installments builds on Mastercard’s investments in
open banking that help deliver a simple and convenient experience
for consumers, merchants and lenders. As an elective option for
lenders, with consumer consent, account-level transaction histories
can be considered as part of the underwriting process, enabling
credit to be safely extended to a greater number of shoppers. Open
banking technology also facilitates the consumer’s preferred method
of repayment, which may be their checking or savings account, a
Mastercard debit card, or another payment product.
Key benefits of Mastercard Installments include:
- Consumers: The Mastercard Installments program enables
consumers to choose how and when they pay for items from a brand
they can trust. Consumers enjoy a seamless experience before and
after checkout through options to access BNPL offers, or secure an
offer at the time of checkout, from trusted lenders for use at a
variety of merchants interest-free. As consumer protection is
paramount at Mastercard, Mastercard Installments provides
ubiquitous acceptance backed by zero liability fraud protection,
not yet available through most current BNPL offerings.
- Merchants & Acquiring Banks: The Mastercard
Installments program helps merchants scale BNPL offerings to
consumers to turn convenience into a competitive advantage. BNPL
solutions have been shown to increase average sales by 45 percent
and reduce cart abandonment by 35 percent post-implementation*.
Mastercard Installments provides seamless merchant integration with
a streamlined process for millions of merchants who already accept
Mastercard. Meanwhile, acquiring banks can offer installments
capabilities to their entire merchant base with minimal, simple
integration.
- Lenders: Through the Mastercard Installments Program,
lenders can offer a flexible, seamless BNPL experience to both
existing and new customers, expanding their lending opportunities
in one of the fastest growing consumer segments. Mastercard
Installments provides an expedited time to market and global
expansion opportunities with a responsible lending approach.
- Wallets and BNPL players: Digital wallets and BNPL
players can easily integrate Mastercard Installments’ APIs and
deploy the solution to consumers and already integrated merchants,
extending reach beyond their existing footprint. Mastercard
Installments is embedded in the core Mastercard network, which
means there is no longer a need for wallets and BNPL players to
build direct settlement arrangements with merchants or acquirers.
BNPL providers can also supplement their existing networks with
additional merchant acceptance.
Fueled by changing consumer spending habits during the pandemic,
BNPL adoption continues to accelerate globally. In addition to
consumer demand, the momentum is being driven by issuer and
merchant desire to deliver new, complementary ways for consumers to
shop both in-store and online.
Mastercard Installments will also provide access and support to
a new suite of APIs to power each step of the BNPL journey; from
installment calculation to multiple repayment options, all
delivered securely and at a global scale through the Mastercard
multi-rail network. Learn more on Mastercard Developers.
Mastercard Taps Key Partners in the U.S. and
Australia
Mastercard Installments will first come to market in the United
States, Australia, and the United Kingdom (UK). Mastercard is
working with Barclays US, Fifth Third, FIS, Galileo, Huntington,
Marqeta, SoFi, and Synchrony in the U.S., and with
Qantas Loyalty and Latitude in Australia. Mastercard
is committed to supporting its customers across the globe to offer
the Mastercard Installments program, with plans to scale to other
markets in the future.
Denny Nealon, CEO, Barclays US Consumer Bank said,
“Barclays US Consumer Bank is excited to partner with Mastercard as
it introduces its new BNPL solution. Our ambition to be the premier
choice for America’s best brands hinges on our ability to deliver a
full suite of products that meet and exceed the needs of our
partners and customers. Mastercard Installments leverages the full
power and reach of the Mastercard Network and will complement the
highly-customized credit and lending solutions we offer to our
partners that drive their businesses forward while delighting their
customers.”
Howard Hammond, Executive Vice President and Head of Consumer
Banking at Fifth Third Bank said, “We are excited to see
Mastercard bring this BNPL solution to the market to provide
customers more choices and ease concerns about payment. This new
Mastercard Installments program meets the growing demand for
flexible options both at the checkout and online.”
Vicky Bindra, Chief Product Officer, FIS said, “BNPL is
one of the fastest growing alternative payment models globally - it
is transforming the traditional purchasing experience for both
consumers and merchants. The rapid growth of BNPL is rooted in the
choice, flexibility and expediency it gives shoppers. We are
delighted to partner with Mastercard to provide pioneering services
to new and existing customers; this collaboration will spearhead
further innovation in the space, making BNPL more accessible to
merchants and consumers, while driving confidence and trust across
the ecosystem to bring increased adoption.”
Amit Dhingra, Retail Payments and Consumer Lending Director,
Huntington National Bank said, “We are pleased to see
Mastercard continue to develop innovative payment features, like
Buy Now, Pay Later for consumers and merchants. We recognize the
need for customers to have greater choice and flexibility in new
and different ways to manage their finances.”
Ahmed Fahour, Managing Director and Chief Executive Officer,
Latitude Financial said, “Through our long-standing
partnership, Latitude is looking forward to working with Mastercard
to bring new BNPL payment solutions to life in Australia,
benefiting merchants and providing customers with a superior
shopping experience.”
Salman Syed, SVP/GM North America at Marqeta said,
“Mastercard has taken a forward-thinking approach to enabling the
Buy Now, Pay Later ecosystem with their new Installment Program. It
allows BNPL providers and financial institutions access to a
merchant network that encompasses anywhere Mastercard is accepted,
and Mastercard has done the hard work of building out the network
infrastructure to support that. We’re excited about the
possibilities for new innovation opened up by combining Mastercard
Installments with Marqeta’s modern card issuing platform and see
this being an attractive proposition for banks and fintechs
alike.”
Anthony Noto, CEO of SoFi said, “As a digital personal
finance company with a passion to help people get their money
right, we pride ourselves on bringing products and features that
meet our members’ wants and needs when it comes to saving,
spending, and borrowing money. The demand for a new way to pay via
BNPL within a debit account like SoFi Money is clear; SoFi is
thrilled to be deepening its partnership with Mastercard to bring
this technology to life.”
Michael Bopp, Chief Growth Officer at Synchrony said,
“Mastercard’s enablement of BNPL offerings across their network
will further empower merchants and consumers with access to a
greater variety of payment options. We are committed to providing
our partners and customers with choice, flexibility and long-term
value, and we look forward to exploring ways we can collaborate
with Mastercard in this endeavor.”
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.
Disclosures:
*Source: Study conducted using Mastercard transaction data;
October 2020
SoFi Money® is a cash management account, which is a brokerage
product, offered by SoFi Securities LLC. Member FINRA/SIPC. Neither
SoFi nor its affiliates are a bank.
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Sangita Bricker Senior Vice President Communications, Product
& Engineering 914.249.1569
Will O’Connor Senior Vice President Communications, North
America 914.249.2121
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