Mastercard has partnered with TSYS to enable consumers to use their Mastercard to split transactions into instalments before, during, or after checkout.
This 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.
The 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.”
The initiative comes as three out of four Americans who have tried instalment plans for the first time during the pandemic plan to continue using them after it is over, indicating the desire for solutions that empower consumers is paramount. The suite of Mastercard instalment offerings includes:
- Pre-Sale: Consumers can predetermine to spread payments over time for specified dollar thresholds and spend categories – such as home improvement purchases over $500 – or can arrange automatic instalments for chosen retailers.
- Point of Sale: Consumers can receive notifications while shopping, enabling them to purchase goods on an instalment plan integrated with their card. In addition, Mastercard’s near real-time capabilities allow cardholders to move their purchase to an instalment plan moments after the purchase is complete without the lift of merchant integration.
- Post-Sale: Shoppers may choose an instalment plan presented by their issuing bank after a purchase is complete, enabled through the new TSYS partnership using the TSYS Digital Engagement Platform.
“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.”
