The two companies plan on delivering a slew of card and real-time payment options, both for in-store and online purchases. Pine Labs end-to-end value solutions will also be included, which the company said will replace paper ones.
Pine Labs, which started as a retail payment provider about 10 years ago, has grown into a payment acceptance, stored value and in-store customer credit company. It’s operational in the Middle East, Southeast Asia and India. The company processes about $30 billion a year and works with 140,000 merchants through 450,000 network points.
“This relationship is a great validation of the top-quality products that Pine Labs delivers to merchants,” said Lokvir Kapoor, Pine Labs’ founder and chairman. “Together, we have a unique opportunity to use Mastercard’s global presence and technology infrastructure to enhance our growth and enable us to meet the growing needs of customers in India and beyond.”
The middle class in South Asia is growing, and increasingly seeks more “buy now pay later” (BNPL) options.
“This offers enormous potential for merchants, brand owners and financial institutions to drive innovations that maximize flexibility and choice for consumers,” the release stated. “Pine Labs works closely with a range of financial institutions and partners who are responsible for the design and delivery of the installment financing service to merchants and consumers.”
According to the release, PwC and the Associated Chambers of Commerce of India conducted a study, published in 2019, that showed the market opportunity for India in the field of installment payments would reach $16.9 billion in 2021, and $52.5 billion by 2025.
“Smart devices are transforming how people shop,” said Ari Sarker, co-president for Asia Pacific at Mastercard. “With this partnership, we’re continuing to build innovative solutions and provide people with new ways to pay right at their fingertips. By joining forces with Pine Labs, we are reinforcing our strategy to deliver choice to consumers and to be the partner of choice for our customers in South Asia and around the world.”