Mastercard announced a new partnership with TSYS, a Global Payments company. The partnership will bring consumers an advanced feature that will enable them to use their Mastercard to split transactions into installments before, during or after checkout, Mastercard said.
Through this partnership, TSYS is the first processor to deliver installment capabilities to issuers in order to provide seamless payments experiences to their cardholders, enhancing Mastercard’s buy-now-pay-later ecosystem. This new partnership complements Mastercard’s comprehensive suite of merchant offerings through API-based solutions, commercial partnerships, and acquisitions across the globe.
“Adding the installment lending function to a bank card is suitable for all parties in the transaction. The consumer has a discrete transaction, separate from their general purchasing. Merchants get to close the sale, and similar to credit card usage, have an opportunity to upsell the customer. The issuing bank benefits with increased spending,” says Brian Riley, director of the credit practice at Mercator Advisory Group.
According to Mastercard research, nearly three quarters of consumers interested in installments prefer the feature be added to an existing card. The new partnership will enable consumers in North America to use their Mastercard to split transactions into installments before, during and after a purchase.
“This new collaboration with Mastercard gives our issuing clients the ability to offer best-in-class installment payment experiences to their cardholders, while enabling consumers to choose when they want to pay,” said Gaylon Jowers, President, TSYS Issuer Solutions and Senior Executive Vice President of Global Payments, Inc. “Our installment solution addresses the growing consumer demand for payment optionality, further solidifying our position as a leading provider of technology solutions across the globe.”
“Today’s consumer is looking for increased choice in how they manage their finances and spend while still demanding a seamless, secure checkout experience whether in store or online,” said Jess Turner, Executive Vice President, North America Product and Innovation for Mastercard. “Our work with TSYS, in conjunction with our wider point-of-sale financing ecosystem partners, helps improve the consumer checkout experience and enables issuers and merchants to benefit from increased consumer acquisition, loyalty and approval rates while decreasing cart abandonment.”
As installments take hold across the globe, Mastercard is delivering customized, in-market solutions that meet the unique needs of shoppers in every region. This includes a global partnership with Splitit in multiple markets around the world to deliver a scalable way to enable merchants to deliver card installments at checkout and online, to work in Europe where Mastercard and Divido have partnered to provide instant access to credit through a paperless and omnichannel experience.
In Asia Pacific, Pine Labs and Mastercard are collaborating to offer capabilities to the South Asia, India and Middle East markets, enabling 150,000 merchants across about 450,000 network points to deliver an extensive range of card and real-time payments-based installment options.
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