Buy now, pay later (BNPL) services have enjoyed an almost frenzied boom since the start of the coronavirus pandemic, with some rising to triple digits during the 2020 holiday season. Now, a major payment network is joining the fray. On September 28, Mastercard announced that it plans to launch a new program in 2022 to offer pay aftermarket services to various banks, lenders, fintech companies, digital wallets and more.
- Mastercard will soon partner with various financial services companies to provide Buy Now, Pay Later (BNPL) services to consumers.
- The payment network will allow existing BNPL platforms to use its program to expand their reach.
- BNPL services allow buyers to make online and sometimes in-store purchases and pay all in equal installments over time instead of upfront.
Mastercard Move to expand BNPL services to more customers
MasterCard, which processes both debit and credit card transactions, is working with a number of financial institutions including Barclays, Fifth Third, Huntington, SoFi and Synchrony to provide BNPL services to consumers.
However, this program will not be limited to those companies. According to a report in The New York Times, Mastercard also plans to use its program to expand its reach to existing BNPL services, such as Afterpay, Klarna, Sezzle and Zip.
The program will allow lenders to provide customers with pre-approved offers through their mobile apps, or they can provide instant approval online or at in-store checkout.
Consumers can also allow MasterCard to view their bank accounts, which can improve their chances of approval.
In addition to the installment payment plan, MasterCard will also offer zero-liability fraud protection and the ability for consumers to dispute unauthorized charges.
Visa, one of Mastercard’s top competitors, has also joined hands with several BNPL services to expand its reach, including new products such as virtual cards. Visa Commerce Bank also offers an installment payment option for select Visa cardholders, And it plans to expand it to other financial institutions in 2022.
Mastercard’s program will start in the first quarter of next year.