Mastercard Also Enters the Buy Now, Pay Later Market

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Mastercard has also entered the Buy Now, Pay Later (BNPL) service market.

On the 28th (local time), according to major foreign media, Mastercard announced the launch of the 'Mastercard Installment Program' in the United States, the United Kingdom, and Australia.

Through this service, customers can make equal installment payments without interest for purchases made online or in stores.

Buy Now, Pay Later is a service that supports interest-free installment purchases, and BNPL providers earn profits by charging merchants fees.

Since the COVID-19 pandemic last year, demand for BNPL services has greatly expanded. Unlike credit cards, it can be used by low-credit individuals and has the advantage of no interest on installment purchases.

Accordingly, many companies are newly entering or expanding their BNPL services.

Square, a mobile payment company led by Twitter CEO Jack Dorsey, announced last month that it would acquire Afterpay, an Australian BNPL provider, for $29 billion, and this month, U.S. online payment company PayPal announced it would acquire Japanese BNPL provider Paidy for $2.7 billion.

Large companies such as Apple and Goldman Sachs are also reportedly preparing to launch BNPL services.

This content was produced with the assistance of AI translation services.