back Back

Mastercard and Pine Labs to expand “pay later” in 5 SEA markets in 2021

By Edil Corneille

December 09, 2020

Share

Mastercard, Pine Labs, payments, fintech, technology, pay later, 2021, Southeast Asia5 Southeast Asian (SEA) markets will see the launch of the integrated “pay later” solution by global payments technology company Mastercard and Pine Labs early next year. Consumers will be offered with the flexibility of zero-interest instalments on purchases. The solution is expected to expand business for merchants and connect banks, FinTechs, payment gateways and device makers to a rapidly growing financing alternative.

By combining the expertise and technology assets of Mastercard and Pine Labs, the expansion adds to their existing “pay later” partnership in India and Malaysia that started in early 2020. The solution will be rolled out in Thailand and the Philippines in February, followed shortly by Vietnam, Singapore and Indonesia.

Card-linked instalments are common on credit cards across Southeast Asia but the Mastercard and Pine Labs solution is said to be much broader by enabling instalments via credit cards, debit cards and bank accounts across in-store and online merchants. Lenders and merchants benefit from the simplicity of a single access point into an instalments network that is easy to integrate and quick to scale.

“The ‘pay later’ option gives consumers the flexibility to manage their cash flow better by offering them the choice to pay in instalments at the point of sale. For merchants, being able to offer instalments at checkout directly influences consumer buying behavior that leads to an increase in the average ticket size, reduces cart abandonment and results in higher sales,” said Sandeep Malhotra, Executive Vice President, Products & Innovation, Asia Pacific, Mastercard.

“Instalment options complement Mastercard’s wide range of payment programs and align completely with Mastercard’s mission of fostering an integrated, inclusive digital economy and delivering great checkout experiences with payments that are secure, simple and smart.”

The global “pay later” market is expected to grow from $7.3 billion in 2019 to $33.6 billion in 2027 at an annual rate of more than 21 per cent, according to a study by Coherent Market Insights. The market intelligence and consulting group sees the Asia Pacific as the fastest-growing region.

“Together with Mastercard, we are opening new and innovative ways for consumers to decide how they shop and pay while empowering merchants, banks and other lenders to join this growing trend of consumer financing at checkout that has become even more popular during COVID-19,” said B. Amrish Rau, CEO of Pine Labs.

“With our expertise in the ‘pay later’ space combined with Mastercard’s global presence and technology infrastructure, we are bringing to life an omni-channel solution that is easy to enable for all the participants and fast to scale. ”

In January this year, Mastercard also made an investment in Pine Labs, which processes more than US$30 billion of payments per year, serves about 150,000 merchants across 450,000 network points in South Asia, Southeast Asia and the Middle East and works closely with lenders and merchants to design and deliver the financing at checkout to consumers.

Previous Article

December 09, 2020

Top 5 FinTech companies leading the Swedish market

Read More
Next Article

December 09, 2020

Sarah Kirshbaum Levy to succeed Jon Stein as Betterment’s CEO

Read More








IBSi Daily News Analysis

Generative AI

April 12, 2024

Security experts sound the alarm on Deepfake threats in the age of AI

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

Today

Navy Federal Credit Union expands partnership with Backbase

Read More

Today

SC Ventures & NEXT176 partner to launch financial wealth platform

Read More

Today

FinTech Focus: Catch latest developments of the week

Read More

Related Reports

Sales League Table Report 2023
Know More
Global Digital Banking Vendor & Landscape Report Q1 2024
Global Digital Banking Vendor & Landscape Report Q1 2024
Know More
Wealth Management & Private Banking Systems Report Q1 2024
Wealth Management & Private Banking Systems Report Q1 2024
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q4 2023
Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
close-link
Get your copy now! IBSi Sales League Table 2023