Mastercard is enhancing its US Installments Program to offer greater flexibility at the checkout stage, catering to the rising consumer demand for versatile payment solutions.
This initiative is now accessible across all eligible digital points of sale, underpinning Mastercard’s commitment to choice, simplicity, and security.
The expanded US Installments experience is designed through Mastercard Installment Payment Services, which integrates a unified platform allowing merchants, financial service providers, payment processors, and digital wallets to present installment offers to consumers. These offers are applicable to any eligible credit card from participating issuers, facilitating consumers to spread their costs over time seamlessly.
Collaboratively, Mastercard has engaged with key industry players such as Global Payments, Skipify, and Splitit. This partnership aims to support the evolutionary steps in digital payments by enabling participating issuers to extend card-attached offers through various consumer payment channels. These channels include digital wallets and connected point-of-sale (POS) systems, without the need for consumers to reapply, simplifying the use of existing cards.
The significance of this expansion is underscored by current consumer trends where a significant proportion of shoppers prefer card-linked installments for high-value purchases. Mastercard’s initiative addresses this preference by enabling 33% of consumers to opt for card-linked installments, with 67% indicating they would switch to merchants offering such options.
From an industry perspective, Mastercard Installments not only enhances the checkout experience by adding value beyond the mere transaction but also fosters trust and transparency. Participating issuers, merchants, and distribution channels are required to adhere to stringent network guidelines and responsible lending practices, ensuring a safe and consistent customer experience.
Comments from industry executives highlight the strategic importance of this rollout. Seema Chibber, executive vice president of Core Products at Mastercard, North America, remarked, “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 at Global Payments, emphasized the issuers’ perspective, stating, “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.”
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