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Mastercard (MA) Ties Up to Launch BNPL Card in Latin America
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Mastercard Incorporated (MA - Free Report) recently joined forces with Mexico’s buy now, pay later (BNPL) platform Aplazo to introduce an innovative virtual card solution backed with BNPL facility across Latin America for the first time.
The partnership entails Aplazo to access the Mastercard Developer platform, through which it can utilize the diversified and solid suite of digital assets and services. This access might help in the seamless launch of Aplazo’s unique virtual card offering.
The first-of-its-kind BNPL virtual card paves the way for safe digital payments in Latin America, which encourages more consumers to come under the purview of a booming digital economy. This common goal of Mastercard shared by Aplazo might have prompted the former to extend the accessibility of its digital services to the latter.
The card is equipped with the advantage of availing installment payments if users desire to access credit while shopping, which can also be cited as a reason why MA gave nod to this partnership. The procedure to avail credit is simple. Users merely need to link their current bank account or debit card to the Aplazo APP. In order to approve credit, users need to create an account at aplazo.mx, consequent to which the virtual card gets activated and can be utilized across all online retailers within Mastercard's network. Meanwhile, users can get easy access to credit as the virtual cards get approved by Apalazo within record time, distinguishing it from traditional entities.
The recent partnership with a BNPL platform marks yet another sincere effort on the part of Mastercard to bring about seamless installment payments throughout the globe. Tie-ups similar to the latest one integrate MA’s credible services within new or existing solutions, which can fetch higher revenues for the technology company in the global payments industry. Mastercard has also left no stone unturned to bring about innovations in its BNPL services in line with the evolving needs of consumers. Simultaneously, these efforts are likely to bolster MA’s presence in the BNPL space. Also, the launch of the innovative product in Latin America seems to be opportune since the region has been grappling with issues related to seamless credit access.
MA has resorted to numerous collaborations with industry leaders to sustain its growing presence in the BNPL space. The intensified focus of Mastercard on serving the BNPL market can be related to the growing popularity of the space offering innovative payment solutions, thereby relieving consumers from the pressure of paying the entire amount at the time of purchase and equipping them with installment payments at the time of checkout.
In March 2022, Mastercard partnered with DBS Bank and Pine Labs to launch a program to give consumers in selected Asian cities access to BNPL offers provided by a wide range of merchants. MA also has a program named Mastercard Installments in place for capitalizing on the solid prospects of the BNPL market.
Similar to Mastercard, other companies such as Visa Inc. (V - Free Report) , Global Payments Inc. (GPN - Free Report) and American Express Company (AXP - Free Report) are also active players in the BNPL space.
Visa’s installment solution was first launched as a pilot in 2019. Gradually, the solution expanded to the United States, Canada, Malaysia and Russia. V’s solution was launched in Australia in 2021. A significant number of issuers, acquirers and fintechs utilize Visa Installments Solution to help customers access BNPL options.
Global Payments has enhanced installment solutions in place, which if integrated within the operations of a company, assures improved checkout experiences. GPN’s company TSYS partnered with Mastercard in 2020 to help issuers and merchants in North America provide flexible payment options. The tie-up empowered customers holding Mastercard cards to divide the payment for their purchases into parts or installments.
American Express has been an active player in the BNPL space. AXP extended BNPL offerings beyond the retail consumer space and integrated these services within the travel space last year. In March 2022, American Express expanded its BNPL solution Plan It to Delta with an aim to boost its presence in the thriving BNPL space and integrate such solutions within the travel industry.
American Express stock has gained 6.3% in the past six months. Meanwhile, shares of Visa and Global Payments have lost 10.7% and 22.5%, respectively, in the same time frame.
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Mastercard (MA) Ties Up to Launch BNPL Card in Latin America
Mastercard Incorporated (MA - Free Report) recently joined forces with Mexico’s buy now, pay later (BNPL) platform Aplazo to introduce an innovative virtual card solution backed with BNPL facility across Latin America for the first time.
The partnership entails Aplazo to access the Mastercard Developer platform, through which it can utilize the diversified and solid suite of digital assets and services. This access might help in the seamless launch of Aplazo’s unique virtual card offering.
The first-of-its-kind BNPL virtual card paves the way for safe digital payments in Latin America, which encourages more consumers to come under the purview of a booming digital economy. This common goal of Mastercard shared by Aplazo might have prompted the former to extend the accessibility of its digital services to the latter.
The card is equipped with the advantage of availing installment payments if users desire to access credit while shopping, which can also be cited as a reason why MA gave nod to this partnership. The procedure to avail credit is simple. Users merely need to link their current bank account or debit card to the Aplazo APP. In order to approve credit, users need to create an account at aplazo.mx, consequent to which the virtual card gets activated and can be utilized across all online retailers within Mastercard's network. Meanwhile, users can get easy access to credit as the virtual cards get approved by Apalazo within record time, distinguishing it from traditional entities.
The recent partnership with a BNPL platform marks yet another sincere effort on the part of Mastercard to bring about seamless installment payments throughout the globe. Tie-ups similar to the latest one integrate MA’s credible services within new or existing solutions, which can fetch higher revenues for the technology company in the global payments industry. Mastercard has also left no stone unturned to bring about innovations in its BNPL services in line with the evolving needs of consumers. Simultaneously, these efforts are likely to bolster MA’s presence in the BNPL space. Also, the launch of the innovative product in Latin America seems to be opportune since the region has been grappling with issues related to seamless credit access.
MA has resorted to numerous collaborations with industry leaders to sustain its growing presence in the BNPL space. The intensified focus of Mastercard on serving the BNPL market can be related to the growing popularity of the space offering innovative payment solutions, thereby relieving consumers from the pressure of paying the entire amount at the time of purchase and equipping them with installment payments at the time of checkout.
In March 2022, Mastercard partnered with DBS Bank and Pine Labs to launch a program to give consumers in selected Asian cities access to BNPL offers provided by a wide range of merchants. MA also has a program named Mastercard Installments in place for capitalizing on the solid prospects of the BNPL market.
Shares of Mastercard have lost 5.2% in the past six months compared with the industry’s decline of 26%. MA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Similar to Mastercard, other companies such as Visa Inc. (V - Free Report) , Global Payments Inc. (GPN - Free Report) and American Express Company (AXP - Free Report) are also active players in the BNPL space.
Visa’s installment solution was first launched as a pilot in 2019. Gradually, the solution expanded to the United States, Canada, Malaysia and Russia. V’s solution was launched in Australia in 2021. A significant number of issuers, acquirers and fintechs utilize Visa Installments Solution to help customers access BNPL options.
Global Payments has enhanced installment solutions in place, which if integrated within the operations of a company, assures improved checkout experiences. GPN’s company TSYS partnered with Mastercard in 2020 to help issuers and merchants in North America provide flexible payment options. The tie-up empowered customers holding Mastercard cards to divide the payment for their purchases into parts or installments.
American Express has been an active player in the BNPL space. AXP extended BNPL offerings beyond the retail consumer space and integrated these services within the travel space last year. In March 2022, American Express expanded its BNPL solution Plan It to Delta with an aim to boost its presence in the thriving BNPL space and integrate such solutions within the travel industry.
American Express stock has gained 6.3% in the past six months. Meanwhile, shares of Visa and Global Payments have lost 10.7% and 22.5%, respectively, in the same time frame.