Mastercard to launch new buy now, pay later service
- The credit card giant Mastercard announced in a Tuesday press release it is launching a new Buy It Now and Pay Later service that will allow consumers to pay for their goods online and in store in four installments with zero interest charges. A spokesperson for the company said the new payment option will roll out next year.
- Mastercard is locking arms with some of the biggest names in payments to deliver the new service, including payment processor FIS, card issuer Synchrony, banking giant Barclays and modern card company Marqeta, he said. in the press release.
- The new Mastercard payment method will debut in the United States, Australia and the United Kingdom in the first quarter of next year, and will then expand over the course of the year to millions more merchants who accept cards from the United States. company around the world.
Although some traditional societies have said in the past that they do not need jump on the BNPL train, Mastercard’s announcement clearly shows that the global trend is now including even large traditional companies.
Buying, New York-based Mastercard said today that the addition of this new service, called Mastercard Payments, for card and real-time payments will give merchants and consumers more options for paying at. a moment when they ask for it.
The trend that started in Australia quickly spread to Europe and has grown in recent years to become a worldwide craze, with merchants recognizing that the sometimes higher fees they pay for credit service also entail larger purchases and more returns.
A Juniper Research study published this year estimated that the new payment method could represent $ 995 billion in sales by 2026.
âMastercard Payments were built on our guiding principles to protect consumers and enable choice without sacrificing trust and security,â said Craig Vosburg, Chief Product Officer of Mastercard. âIt’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. “
The company said the new BNPL payout choice will need to be pre-approved beforehand, with value stored in a digital wallet, before it can be used online or in stores anywhere Mastercard cards are accepted.
âInstant approvals at checkout will be available through Click-to-Pay shortly after launch,â Mastercard said in the release. âConsumers will benefit from full transparency into lender practices from the start of the approval process, and unlike most current BNPL offerings, consumers will continue to benefit from zero liability fraud protection, the ability to dispute unrecognized charges and the peace of mind that comes with Mastercard’s acceptance imprint. “
Mastercard said it will make the new service available “without costly integration into the merchant’s infrastructure, enabling them to quickly deliver secure and competitive BNPL experiences at scale.”
Banks will be able to offer the payment option to merchants with “simple and minimal integration,” the statement said. In addition to Barclays, Fifth Third will also participate in the new Mastercard program.
Software developers and other companies creating BNPL options can also participate. “Digital wallets and BNPL players can easily integrate Mastercard Payments APIs and deploy the solution to already integrated consumers and merchants,” the statement said.