Mastercard is expanding its US Installments experience at checkout to provide consumers with more choice in how they pay through Mastercard Installment Payment Services.
Through a single and streamlined platform, players across the ecosystem – merchants, financial service providers, payments processors, digital wallets – will be able to present installment offers for consumers to any eligible credit card from participating issuers.
As a result, consumers will be able to spread their purchases out over time with an installment plan that is pre-approved on any eligible credit card.
Mastercard will be working with partners from across the issuing and digital payments industry, including Global Payments, Skipify and Splitit, to support this continued evolution.
How it works:
Participating issuers can extend their card-attached offers to a variety of consumer payment channels, including participating digital wallets, connected point-of-sale (POS) systems and other digital payment options.
Participating merchants will be able to provide access to millions of pre-approved offers by connecting to the API-based platform. The offers can be presented without the need for new applications, making it easier for consumers to pay using the cards they already have[1].
Through Mastercard’s personalization capabilities, issuers and merchants can offer eligible consumers the choice to receive tailored installment payments offers over time. This provides them with more flexibility and control over large purchases, from travel to shopping.
Why it matters:
As consumers make larger purchases – either online or in-store – demand is driving expectations for more flexible payment options that can benefit both consumers and merchants.
Today, 33 percent of consumers would choose card-linked installments for big-ticket purchases – more than any other installment option. [2]
And 67 percent of installments users say they’d switch to a new merchant that offers card-linked installment offers.[3]
Mastercard is elevating the checkout experience to provide greater value than a simple purchase: consumers can receive installments payments as a benefit of their existing card, and merchants have a simple and consolidated way to provide these offers to their customers.
Mastercard Installments provides trust and transparency. To participate, issuers, merchants, and distribution channels follow network guidelines, responsible lending practices and data usage practices to ensure safe, secure and consistent experiences.
Consumers enjoy the same peace of mind that they receive from any other Mastercard product, including tokenization, dispute resolution, Zero Liability Protection, and more.
Hear from the experts:
Seema Chibber, Executive Vice President, Core Products, Mastercard, North America: “Over the past few years, we’ve seen consumer demand and adoption of installments continue to rise as digital payment options grow across channels. Fueling that momentum is driven by issuer and merchant desire to deliver simple, transparent and flexible ways to pay, whenever and wherever consumers are. We are thrilled to bring a more modern and simplified approach to the market with key partners that can help scale this to millions of consumers.”
Dondi Black, Executive Vice President and Chief Product Officer of Issuing, Global Payments: “Issuers are seeking better ways to address consumers’ need for expanded access to flexible, affordable payment options. Our commitment is to enable the meeting of these needs by empowering great experiences – backed by exceptional security – that help issuers build trust with their customers and maintain compliance. Our leading position in the marketplace drives us to seek out partners, like Mastercard, who share this commitment.”
Jeff Smith, SVP Partnerships, Skipify: “At Skipify, we’re committed to making checkout experiences more flexible, intuitive, and shopper-friendly. Our collaboration with Mastercard allows us to integrate installment options seamlessly into the shopping journey, eliminating barriers and enhancing convenience. We are excited to help Mastercard deliver this product at scale across our many merchants, bringing even more choice to shoppers while enabling customers to offer flexibility in a simpler and more cost-effective way than ever before. Together, we're empowering consumers and driving greater value for businesses.”
Collin Flotta, Head of Product, Splitit: "We are thrilled to expand our partnership with Mastercard and support their innovative Installments program. As a leading global provider of installments, our platform can integrate seamlessly at thousands of checkout locations, enabling banks, issuers and merchants to elevate their payment options. Both Mastercard and Splitit share the vision of unlocking installments for banks and financial institutions to provide more flexibility at checkout.”
[1] New terms and conditions apply
[2] Redefining Retail, PYMNTS May 2024
[3] Redefining Retail, PYMNTS May 2024