Mastercard, LoanPro launches card-based installment lending

By Vriti Gothi

Mastercard has partnered with lending technology provider LoanPro to introduce Loan on Card, a new solution aimed at modernising loan disbursement and access for consumers and small businesses. The product is expected to launch in 2026.

The initiative combines fixed-term instalment lending with Mastercard’s global card acceptance network, allowing lenders to disburse approved loan amounts directly to a virtual or physical Mastercard. Built on the Mastercard Instalments Program, the solution is positioned as an alternative to traditional payment rails such as ACH transfers, which are often slower and less flexible.

The move addresses a longstanding friction point in personal and instalment lending: the delay between loan approval and fund availability. By enabling instant card-based access to loan proceeds, the partners aim to improve immediacy while preserving the predictability of instalment repayments. Borrowers can use the card online or in-store wherever Mastercard is accepted, without the revolving balances typically associated with credit cards. Credentials can also be provisioned directly into digital wallets.

For lenders, the model offers a way to modernise disbursement while maintaining control over the loan lifecycle. Issuing a card credential allows funds to be delivered directly to a borrower’s wallet, reducing operational complexity and dependency on legacy transfer systems.

Stefany Bello, senior vice president, digital partnerships, FinTech and enablers, US at Mastercard, said, “The solution reflects a broader shift in how lending products are designed and delivered. The Loan on Card concept is a powerful example of how technology can simplify lending for financial institutions and borrowers. Together, Mastercard and LoanPro intend to help lenders deliver flexible funding to consumers and small businesses with the reach and trust of the Mastercard network.”

The launch underscores a wider industry trend toward embedding lending within digital payment ecosystems. As FinTechs and financial institutions seek faster, more user-friendly financing models, card-based instalment solutions are emerging as a way to bridge traditional lending structures with real-time, digital-first consumer expectations.