MasterCard launches buy-it-now and installment payment service
MasterCard announced this week, September 28, the launch of MasterCard Payments, its new foray into the flexible buy-it-now and installment payment services market.
The program will first be marketed in the United States, United Kingdom and Australia.
Start-ups like Klarna, Affirm, Afterpay, and Square have so far dominated the payment method, and MasterCard is looking to meet consumer demand that has increased since the pandemic went into a greater consumer preference for online shopping.
MasterCard payments will be accessible for online as well as in-store purchases, adding the functionality to a digital wallet payment method.
The program offers 0% interest rates and allows consumers to repay their purchase in four installments.
“At the heart of it all, payments are about choice – and people want more from their money with more flexibility and more control over how they pay and where they shop,” Craig said. Vosburg, Product Manager at Mastercard. “Mastercard Payments was built on our guiding principles to protect consumers and enable choice without sacrificing trust and security. It’s a digitally-driven payment today and tomorrow, delivered through consumers’ most trusted relationships with their banks and other lenders, at the merchants of their choice.
On the merchant side, the functionality allows merchants to only have to integrate it minimally into their infrastructure for those who already accept MasterCard, unlike other payment services that need to be better integrated.
Buy-now and pay-later options have been shown to increase average sales by 45% and reduce cart abandonment by 35%, according to a MasterCard study.
MasterCard is partnering with Synchrony – located in Stamford – Barclays US, Fifth Third, FIS, Galileo, Huntington, Marqeta and SoFi to roll out the program in the United States.