Mastercard has acquired Texas-based instalment payments platform Vyze to strengthen its point of sale (POS) financing business.
The acquired entity connects merchants with a number of lenders and enables them to provide their customers various online and in-store credit options at the point of purchase.
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Furthermore, the acquisition will enable Mastercard to offer additional choice to consumers beyond its existing credit card and ACH platforms.
Mastercard buys Vyze
At present, the buy-now-pay-later market is mainly occupied by non-bank fintech start-ups. According to Accenture’s data, banks could be missing out on a $1.8trn opportunity in the US alone.
Commenting on the deal, Mastercard executive vice president of global acceptance Blake Rosenthal said: “Both consumers and businesses want the best choice and service, exactly when they need it.
“Vyze adds to our ability to empower banks and other lending partners to participate in the growing trend of retail financing. The combination of their platform with our technology and network complements our existing payments programs.”
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By GlobalDataThe Vyze platform provides merchants with simple APIs to redirect credit requests to customer banks.
Mercator Advisory Group director of merchant services practice Raymond Pucci said: “Shoppers looking for new ways to pay and merchants looking to sell higher ticket items and deter abandonments has driven a flurry of activity in the ‘Buy Now, Pay Later’ market.
“This acquisition creates a new market making approach that supports operation at scale, helping banks offer and merchants shop for the terms that best fit their needs. Mastercard’s existing relationships will assure both take a serious look at this new solution.”
Furthermore, the companies did not disclose financial terms of the deal.
