Mastercard Inc. on Tuesday launched its Tapping Now, a pay later service, in a market that is threatening to end the dominance of credit cards as the main source of payment.
The Buy Now, Pay Later sector got a boost during the COVID-19 pandemic as cash-strapped shoppers opt for the service due to the ease of making part-payments for products purchased online or in store, at no extra cost or fee. were attracted to.
In turn, the businesses of some of the biggest players in the market have grown, including Klarna, Affirm Holdings, Afterpay Ltd and PayPal Holdings Inc., driving a string of large acquisition deals.
In August, Square Inc.—the payments firm of Twitter co-founder Jack Dorsey—bought Afterpay in a $29 billion deal, while earlier in September, PayPal said it would buy Japanese BNPL firm Pedi in a $2.7 billion deal. will acquire.
Mastercard said on Tuesday that its MasterCard installment program will allow consumers to pay for online and in-store purchases via equal and interest-free installments, saying it will be available in markets in the United States, the United Kingdom and Australia. will be available.
Mastercard said the Buy Now, Pay Later option enables banks, lenders, fintech firms and has the potential to offer BNPL solutions. Customers will be able to get such offers digitally, pre-approved through the lender’s mobile banking app or through instant approval during checkout, it said.
Companies that buy now, pay later typically charge merchants a fee to offer customers small, point-of-sale loans, which are paid back in interest-free installments, in the process. Credit checks are bypassed.
Other big companies like Apple Inc and Goldman Sachs are also reportedly working on BNPL offering.
by Sohini Poddar
This News Originally From – The Epoch Times