Mastercard Inc. MA has expanded its partnership with fintech company Jifiti to continue providing point of sale (POS) financing. The agreement allows both merchants and issuers to offer credit and consumer financing to Mastercard holders.
POS financing is a kind of buy-now-pay-later (BNPL) facility. BNPL space as a huge market opportunity and is likely grow further. Per the company’s research, nearly three-fourth consumers interested in installments prefer the feature to be added to their existing card. Also, three of four Americans who tried the installment plans for the first time during the pandemic intend to continue doing so after the coronavirus dies down. This reflects customers’ growing desire for such solutions.
Given that e-commerce gathered much steam after the COVID-19 outbreak, buyers resorted to online buying. They are also demanding financing support as most of them are facing financial constraints from job losses, low earning from business, etc. This staggered payment functionality allows customers to make purchases, which would otherwise be layaway targets or beyond their budget.
POS financing is a win-win deal for all participants involved in a transaction Continue reading on nasdaq.com
