New partnership with Verifone Systems is now being introduced in Europe.
Mastercard Installments, a new application, is being offered through a partnership between Mastercard and Verifone System, and allows shoppers to apply for and open credit payment plans at point of sale if they opt for a monthly installment payment plan for their purchases.
The Mastercard Instalments app is being launched in Britain after a successful rollout in Romania, and it will be available starting in January through some UK retailers with further rollout scheduled after.
"For the merchant it's an interesting value proposition because we're saying: we're going to give your customers a new way of financing their purchase that's private - they don't need to talk to anybody or do any credit checks," Verifone commerce enablement and innovation vice president Nathan Gill told Reuters at the sidelines of the Trustech conference in Cannes.
"It’s very simple: they put in their Mastercard, they’re given an offer in real-time, and they can decide whether to accept it or not," he added, saying he expected the app would lead to more purchases being made, of a higher value.
The Mastercard Instalments application is built on the open, cloud-based Verifone Commerce Platform. When paying at checkout, eligible shoppers will be offered the opportunity to pay on installment and provided with interest rate information. They can immediately accept the terms of the plan without submitting to a more formal credit check.
“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,” said Andrew Buckley, MasterCard’s head of core products in Europe.
“Working with Mastercard, we are bringing flexible payment acceptance to merchants and smarter purchasing options to shoppers at the POS where they can experience ease and choice to fit their lifestyles,” said June Felix, president of Verifone Europe. “Leveraging our large client base and devices that support Commerce Platform, we are initiating discussions with leading UK retailers interested in testing the Mastercard program this year.”
“Verifone’s payment devices are used all over the country, so this is a big step forward to introducing Mastercard Instalments as a new way to pay,” said Mark Barnett, President, Mastercard UK & Ireland. “This agreement gives us the ability to roll out the program with retailers large and small throughout the UK. We believe consumers will welcome this new way to pay, by easily spreading the cost of expensive items.”
Look for the possibility of Mastercard Instalments to spread to the U.S. market in the future, if the European rollout goes smoothly.
