Mastercard launched a buy now, pay later service, tapping into a market that is threatening to chip away at the dominance of credit cards as a main source of payments.
The buy now, pay later sector was fast tracked during the COVID-19 pandemic as cash-strapped shoppers were attracted to the service due to the ease of making part-payments for products they bought online or at stores, without additional costs or fees.
Earlier this year we saw Square the payments firm co-founder by Jack Dorsey enters the buy now and pay later market. The payment solutions bought Afterpay in a $29 billion deal, while earlier in September. Square Inc was followed by PayPal as it was reported that the company acquired the Japanese BNPL firm Paidy in a $2.7 billion deal.
Th company said, “Mastercard Installments program will allow consumers to pay for online and in-store purchases through equal and interest-free installments, adding that it will be available in markets across the United States, the United Kingdom and Australia.”
The buy now, pay later option enables banks, lenders, fintech firms and wallets the ability to offer BNPL solutions, Mastercard said.
Customers will also be able to access such offers digitally, pre-approved through the lender’s mobile banking app or through instant approval during checkout, it said.
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