Citi and Mastercard Offer ‘Citi Flex Pay’ to Expand Installment Options

Citi cardholders will be able to begin using the bank’s pay-over-time solution, Citi Flex Pay, at checkout. This will be available at merchants participating in Mastercard’s Installments Payment Services by the end of the year.

The companies said in a Friday (Oct. 24) press release that Citi will enable this capability by joining Mastercard’s Installments Payment Services. Citi will be the first issuer to do so.

Citi Flex Pay allows cardholders to select a pay-over-time plan at checkout, according to the release. This plan is built into Citi credit cards. It allows users to split eligible purchases into fixed monthly payments. It does not require additional applications, credit lines or credit checks.

“We’ve built a solution with Citi Flex Pay that is convenient, easy to use and brings real value to our cardmembers,” Abhinav Anand, head of U.S. value and unsecured lending at Citi, said in the release. “Together with Mastercard, we’re now bringing even more access to flexible payments directly at checkout, creating a seamless experience for customers and retailers alike.”

Mastercard Installments Payment Services can be added to checkout experiences in a range of industries, including consumer electronics, jewelry and home furnishings, according to the release.

In the collaboration with Citi, participating retailers’ customers will automatically see the Citi Flex Pay options at checkout, per the release.

“By adding Citi’s portfolio to our Installments Payment Services, we’re making flexible, simple and secure payments available to millions of cardholders. This provides the same peace of mind that they receive from other Mastercard products,” Seema Chibber, executive vice president, core products at Mastercard, said in the release.

Mastercard said in October 2024 that it was expanding its U.S. Installments Payment Services program to all eligible digital points of sale. The company said this offering would allow merchants, financial service providers, payment processors, and digital wallets to present installment offers for consumers to any eligible credit card. This applies to cards from participating issuers.

Chibber told PYMNTS in April that Mastercard aims to integrate installment and buy now, pay later features more deeply into its network infrastructure.

The company is responding to “an explosion in the preference for installments,” Chibber said.

“That is why we’ve been investing in capabilities that are versatile, so whether it’s a buy now, pay later option offered by a FinTech, a traditional issuer’s credit program or a debit-based solution, Mastercard is embedding installments right into the payments experience.”