With MasterCard Instalments, cardholders will be able to split transactions across equal monthly instalments using their existing debit, credit or commercial card at the time of purchase. This makes high-value purchases, such as a new TV or car repairs, more attainable and manageable for consumers.
“Based on consumer research and consultations with consumers associations, issuers and other stakeholders in the payment value chain, the solution is designed to respond to the needs of consumers and business partners.Today, everyone is looking for a smarter way to shop: consumers want flexible payment solutions that will help them fulfill their needs while maintaining a better control over their budget,” comments Andrew Buckley, MasterCard’s head of core products in Europe.
MasterCard Instalments can help businesses, issuers and acquirers reach durable business growth by satisfying their customers’ needs for more payment options. Benefits include:
- CONSUMERS: In a Europe-wide research study conducted by MasterCard, consumers regarded instalments as an innovative payment method of great appeal. MasterCard Instalments allows cardholders to conveniently spread out repayment of bigger and sometimes unexpected purchases, like replacing a washing machine, into equal scheduled payments. Instalments gives cardholders greater choice at the point of sale, allowing them to use their debit, credit or commercial card to stretch their budget when they need it while keeping control of their spending.
- RETAILERS, TRAVEL COMPANIES & OTHER BUSINESSES: By offering additional payment flexibility with MasterCard Instalments, businesses can benefit by attracting new customers and retaining current clients, thereby increasing sales—while still being paid with the security and speed of electronic payments.
- ISSUERS: MasterCard Instalments enables issuers to address consumers’ growing need for responsible money management and budget control. The value-added service to the card of their customers helps issuers differentiate their portfolio from competitors. Moreover, MasterCard is enhancing its network capabilities with the aim of delivering a value-added service to its customers that applies to debit cards, credit cards and commercial cards, while reducing the implementation efforts on the issuer side.
- ACQUIRERS: MasterCard Instalments will help acquirers increase their merchant acquisition rates and grow their revenue volumes by offering a new payment solution that allows businesses to sell more to their customers.
MasterCard Instalments will be piloted in selected markets in Europe throughout the second half of 2016.