Mastercard offers a Buy It Now, Pay Later option
Amazon, the country’s largest retailer, recently partnered with Affirm, which will offer options to check out later. And Square, Twitter boss Jack Dorsey’s payment company, agreed to acquire Afterpay, another provider, for $ 29 billion in early August.
Visa, another payment processor, said it has partnered with several pay-later companies to help them expand and offer new products, including virtual cards. Visa is also making technology available to Commerce Bank that allows certain Visa cardholders to choose to pay in installments. Visa said it expects to expand this program to more issuing banks over the next year.
Pay-lat options still account for just 1.7 percent of online sales in the United States, a credit card-dominated segment that reported 30.4 percent last year Worldpay, a payment processing company.
However, the proportion of pay-later shares is expected to nearly triple by 2024 to 4.8 percent of US sales – or $ 79.7 billion – Worldpay estimates. They are already more established abroad: Pay-later accounts for 23 percent of online transactions in Sweden and almost 20 percent in Germany, and the method is also popular in Australia, Finland, New Zealand and Norway.
Mastercard’s program offers consumer protection typically associated with credit cards, including zero liability fraud protection and the ability to challenge unrecognized fees, the company said.
“Mastercard is a trustworthy brand, as are its banking partners, and that matters a lot to consumers.” Mrs. Schmeltzer called. “That being said, brands like Klarna and Afterpay have a large and growing – and apparently very loyal – consumer base. It will be a very interesting race to see. “