Mastercard and Pine Labs will launch their integrated “pay later” solution in five Southeast Asian markets early next year to offer consumers the flexibility of zero-interest instalments on purchases.
The latest expansion will also expand business for merchants and connect banks, fintechs, payment gateways and device makers to a rapidly growing financing alternative.
The expansion adds to both parties’ 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.
“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.”
“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,” said B. Amrish Rau, Chief Executive Officer of Pine Labs.
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 percent, according to a study by Coherent Market Insights. The market intelligence and consulting group sees Asia Pacific as the fastest-growing region.