Mastercard announced that it has launched a “buy now, pay later” (BNPL) commercial card solution called “Mastercard Pay & Split” for small and medium enterprises (SMEs) in the Asia Pacific region.
Accepted at 80 million merchants worldwide, the card-led installments product offers monthly or periodic installments.
Mastercard Pay & Split is a first-of-its-kind, network-based, open-loop installments solution that will be made available anywhere in the world.
The payment giant said that with Pay & Split, businesses can easily make installment finance purchases from suppliers around the globe and better manage cashflow, while eliminating the hassle of managing fragmented payment plans.
In addition to providing simpler access to financing, Pay & Split will offer a path for these smaller operators to build a credit history.
“Many small business owners rely on personal lines of credit or non-bank lenders to help finance their operations, which is not ideal in terms of sustainable business growth. Mastercard Pay & Split brings new credit opportunities to smaller operators who may not meet certain thresholds for a traditional commercial credit card or term loan, but need working capital to stay afloat or expand. It also opens the door for businesses to generate a credit rating, which can then be used to apply for more sophisticated credit products as the business grows.”
said Sandeep Malhotra, Executive Vice President, Products & Innovation, Asia Pacific, Mastercard.