Mastercard has partnered with payment firm TSYS to offer instalment options for its customers in North America that will allow them to split transactions, during or after checkout.
This tie-up follows Mastercard’s suite of merchant offerings through API-based solutions, commercial partnerships, and acquisitions across the world.
TSYS partnership will enable shoppers to choose an instalment plan presented by their issuing bank after a purchase is complete. It is enabled through TSYS Digital Engagement Platform.
The initiative is said to be an extension of Mastercard’sbuy-now-pay-later ecosystem.
Mercator Advisory Group credit practice director Brian Riley said: “Adding the instalment 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.”
A Mastercard research showed that around three quarters of consumers interested in instalments want the feature to be added to an existing card. Another study by the company found that three out of four Americans, who tried instalment plans during the pandemic, plan to continue using them.
TSYS Issuer Solutions president and Global Payments senior executive vice-president Gaylon Jowers said: “This new collaboration with Mastercard gives our issuing clients the ability to offer best-in-class instalment payment experiences to their cardholders, while enabling consumers to choose when they want to pay.
“Our instalment solution addresses the growing consumer demand for payment optionality, further solidifying our position as a leading provider of technology solutions across the globe.”
Mastercard recently launched a new suite of frictionless solutions to allow merchants to adapt to the new touchless economy, in the wake of the Covid-19 pandemic.