QuadPay, which works in buy now, pay later (BNPL) services, has partnered with Mastercard Vyze, an alternative financing platform, to offer a new installment-based payment system, according to a press release.
Vyze uses an end-to-end technology platform that can work with businesses and lenders to offer more variety in payment methods.
The press release stated that many national and regional retailers, including in the fields of home improvement, electronics and fitness, use the service.
By integrating with QuadPay, Vyze will now be able to use BNPL as an option for shoppers, and they'll be able to pay in four installments rather than all at once. The service is usually used for items between $35 and $1,500, the release stated. There's no interest included and no stress on credit scores.
QuadPay's services for merchants include delivering an average order value lift of around 20 to 60 percent and conversion rate improvements of around 20 percent right after launch, the release stated.
Vyze was acquired by Mastercard in 2019. In an interview with PYMNTS, Blake Rosenthal, executive vice president of acceptance solutions with Mastercard, said the decision to buy Vyze came from the emerging viability of the point-of-sale market, with consumers looking for more choice and flexibility on how they make payments.
In addition, the structure of Vyze as more of a digital commerce “matchmaker” was a factor. Rosenthal said the use of Vyze allows merchants to drastically expand the amount of potential lenders that can be used. That leads to better integration and the ability to scale almost immediately.
BNPL is seeing a huge upswing this year as people hold onto their cash during times of economic instability, although it has been trending upward for the past several years anyway. The entry of major players like Visa into the market also signals that the payment method is becoming much bigger.