The global pandemic is driving consumers to seek flexible payment options while issuers and merchants alike want to provide cardholders with choice, control and simplicity at checkout. To address this, Mastercard announced a new partnership with TSYS, a Global Payments company, that will enable consumers to use their Mastercard to split transactions into installments before, during or after checkout. 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.
“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”
“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.
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Consumers Want Installment Options for Credit Card Purchases
Nearly three quarters of consumers interested in installments prefer the feature be added to an existing card, according to Mastercard research.1 The new partnership with TSYS 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.”
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