Instant, easy and responsible: buy now, pay
later program continues to expand and reinforces commitment to
consumer protections
Mastercard has welcomed a raft of new global partners to its
innovative Mastercard Installments program and is expanding it
further to support small businesses in the U.S. Illustrating the
demand for powerful buy now, pay later (BNPL) experiences from
familiar and trusted brands, several new partners are providing
support for the program, including HSBC, J.P.Morgan and NatWest in
the U.K.; Cross River Bank, Evolve Bank & Trust, Jifiti, Live
Oak Bank, MOCA Financial and WebBank in the U.S.; and Saudi
National Bank (SNB) in Saudi Arabia. The program taps the power and
scale of the Mastercard network, which connects to more than 90
million merchants globally, to instantly support secure BNPL
payments at checkout, both in-store and online.
In addition to delivering more payment choice, Mastercard
Installments is built on responsible lending practices and supports
shoppers with an enhanced set of consumer protections, data
transparency and insight-driven programs. Through technology, data
and insights, and its consulting expertise, Mastercard is creating
a more intelligent way to provide installment lending at scale.
“We believe no matter how you pay, a foundation of strong
protections must be in place,” said Craig Vosburg, Chief Product
Officer at Mastercard. “Trust is the currency of innovation. Using
a Responsible-by-Design approach ensures that we stay ahead of
consumer, merchant and bank needs and expectations, continuously
building confidence in the payments ecosystem by providing choice
at scale.”
A Responsible, Intelligent Way to Offer Installment
Lending
According to new global consumer research from Mastercard's
World Payments Advisory™, nearly a quarter of respondents across
50+ markets have used a BNPL product in the past six months.[i] For
BNPL users, “forgetting the payment was due” was the leading reason
for missing an installment payment, while concerns about “hidden
charges” were cited as a leading barrier to consumer adoption
overall. Mastercard Installments addresses these concerns with a
suite of unique, innovative services that increases transparency
and helps protect consumers and businesses. These services
include:
- Cutting-edge insights and analytics: Merchants and
lenders are able to access a comprehensive set of data dashboards
to better understand how their products are performing. Mastercard
Test & Learn® technology can also pinpoint where to prioritize
efforts and resources that enhance the user experience and drive
successful loan repayment.
- Mitigating repayment risk with open banking and AI: In
the U.S., using consumer-permissioned data and open banking
technology, lenders can identify behavioral patterns to reduce the
risk of failed payments while artificial intelligence can adjust
models more quickly and accurately for success.
- Dedicated and embedded consumer protections: To
participate in the Mastercard Installments program, lenders agree
to follow applicable laws and network guidelines on responsible
lending practices and data usage practices, among others. Consumers
and U.S. small businesses enjoy the peace of mind that they get
today from any other Mastercard product – including tokenization,
dispute resolution, and zero fraud liability.
Empowering U.S. Small Businesses
Mastercard research shows that over 70% of small business owners
who have used personal installments are likely to adopt business
installments products if they become available.[ii] Meeting this
demand in the U.S., Live Oak Bank, the nation’s leading small
business lender, will support the program, with the goal to make
Mastercard Installments available to its 7,000 small business
customers.iii This builds on Mastercard’s ongoing commitment to
Main Street America, delivering products and services that help
improve operational efficiency, manage cash flow and maximize
customer connections with financial tools.
Learn more about Mastercard Installments and its range of
benefits for consumers, merchants and acquiring banks, lenders, as
well as wallets and BNPL players.
Madhu Kejriwal, Group Head, Unsecured Lending &
Partnerships, HSBC Wealth & Personal Banking, said,
“Customer expectations have evolved as the payments landscape has
advanced, so banks need to find appropriate solutions.
Buy-Now-Pay-Later (BNPL) lies at the intersection of payments and
lending; it can provide customers with a seamless payment option.
However, it’s important to realize that it’s very much a form of
credit. HSBC is fully committed to responsible lending, and
providing transparency to customers is of utmost importance to us.
We want to clearly position any BNPL payment plan as part of a
customer’s approved credit line. Our partnership with Mastercard is
a crucial element of HSBC UK’s responsible lending strategy, as it
enables us to provide customers with access to trusted payment
options when they want to budget for larger purchases with
affordable payment plans.”
Huntley Garriott, President of Live Oak Bank, said, “Live
Oak knows small business customers need flexible financial products
that provide security, transparency and scalability so they can
grow their business at the pace that suits their needs. We are
excited to partner with Mastercard to explore lending solutions
through the Mastercard Installments program as it allows us to
deliver innovative products from a trusted source while aligning
with our mission to be America’s small business bank.”
Martin Wise, Managing Director, Short-Term Borrowing at
NatWest, said, “There’s a clear demand for buy now, pay later
and we are determined to make it better and safer for our
customers. By working closely with Mastercard, we are ensuring
responsible measures such as clear affordability checks and useful
tools, such as payment reminders to help customers budget, are at
the heart of our solution.”
Majed Hamdan Al Ghamdi, Chief Executive Officer of Retail
Bank at the Saudi National Bank, said, “Flexible payment
options benefit everyone in the ecosystem, and our partnership with
Mastercard enables us to connect people in Saudi Arabia to the
seamless benefits of Mastercard Installments. Through this
initiative, we are providing consumers with enhanced ways to pay
when and where they want and in line with their budget needs.
Underpinned by the renowned security of the Mastercard network,
Mastercard Installments opens up new shopping experiences to
consumers across the Kingdom while offering them reassurance,
confidence and peace of mind.”
Sources:
- Mastercard World Payments Advisory. “The Explosive Growth of
“Buy Now, Pay Later Report.” Quarterly online survey of 53,500
adults in 50+ countries. Conducted April 30-June 14, 2022.
- Mastercard & Kaiser Associates, Small Business Installments
Analysis, 2021
- Source note: #1 SBA 7(a) lender by dollar amount for FY 2021.
The data supplied by the SBA reflects 7(a) highest dollar volume
during FY 2021.
About Mastercard (NYSE: MA)
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.
www.mastercard.com
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Media Contacts:
Sangita Bricker, Senior Vice President, Global
Communications 914.249.1569 |
sangita.bricker@mastercard.com
Will O’Connor, Senior Vice President, Communications, North
America 914.249.2121 | will.o'connor@mastercard.com
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