MasterCard Tests Installment Payments With Biz Cards

MasterCard is launching an experimental program in Europe, and it’s going to impact commercial cards, as well as consumer payment cards.

Reports published Tuesday (Jan. 19) said MasterCard is rolling out a new feature in pilot phase that allows card issuers, including commercial card issuers, to activate an installment payment feature on their card products for customers that wish to sign up.

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According to MasterCard, the program allows customers to decide how many months they would like to take to repay on high-value and unexpected purchases, allowing buyers to repay for a product in installments over time. The program is dubbed MasterCard Installments.

The credit card giant stated that research conducted by the company found that customers across Europe find the idea of repaying for major purchases in installments “of great appeal.”

For retailers, this means a broader appeal to customers, too. Card issuers will also benefit by providing customers with a budget management service.

“Today, everyone is looking for a smarter way to shop. Consumers want flexible payment solutions that will help them fulfill their needs while maintaining a better control over their budget,” said MasterCard Head of Core Products in Europe Andrew Buckley in a statement.

The company did not remark specifically on the benefits of an installment payment plan for corporate customers and users of commercial cards, however.