Mastercard and Pine Labs will launch “pay later” solution in five Southeast Asian markets early next year.
This gives consumers the flexibility of interest-free installments at the time of purchase, expanding the merchant’s business and connecting banks, fintech, payment gateways, and device manufacturers with fast-growing financing options.
The solution will be rolled out in Thailand and the Philippines in February, followed shortly by Vietnam, Singapore and Indonesia.
Card-linked instalments are common on credit cards across Southeast Asia but the Mastercard and Pine Labs solution is much broader by enabling instalments via credit cards, debit cards and bank accounts across in-store and online merchants. Lenders and merchants benefit from the simplicity of a single access point into an instalments network that is easy to integrate and quick to scale.
“The ‘pay later’ option gives consumers the flexibility to manage their cash flow better by offering them the choice to pay in instalments at the point of sale. For merchants, being able to offer instalments at checkout directly influences consumer buying behavior that leads to an increase in the average ticket size, reduces cart abandonment and results in higher sales,” said Sandeep Malhotra, Executive Vice President, Products & Innovation, Asia Pacific, Mastercard.
“Instalment options complement Mastercard’s wide range of payment programs and align completely with Mastercard’s mission of fostering an integrated, inclusive digital economy and delivering great checkout experiences with payments that are secure, simple and smart.”
“Together with Mastercard, we are opening new and innovative ways for consumers to decide how they shop and pay while empowering merchants, banks and other lenders to join this growing trend of consumer financing at checkout that has become even more popular during COVID-19,” said B. Amrish Rau, CEO of Pine Labs.
“With our expertise in the ‘pay later’ space combined with Mastercard’s global presence and technology infrastructure, we are bringing to life an omni-channel solution that is easy to enable for all the participants and fast to scale. ”
