Payments giant Mastercard will launch new technology allowing banks around the world to offer buy now, pay later (BNPL) products, in a sign the instalment payments pioneered by Afterpay have well and truly entered the financial mainstream.The global card business on Tuesday night said strong demand for BNPL services had prompted it to develop infrastructure that will allow banks, fintechs and other lenders to deploy instalment loans across its vast network.Mastercard’s Richard Wormald: “I see buy now, pay later as just an evolution of a lending offering.”CREDIT:GETTYIt said growth in BNPL products continued to accelerate globally as digital commerce boomed, and banks and merchants wanted to offer shoppers new ways to pay.BNPL products are short-term, interest-free instalment loans that have surged in popularity, and are competing with Mastercard’s traditional business in credit cards.
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