The US card scheme acquires the FinTech Vyze and aims for the in-store off-line and online credit market. The financial terms of this transaction haven’t yet been disclosed.
Goals: Feature a new service for merchants and issuers, allowing them to increase their conversion rates and average cart amounts.
The offer: Vyze crafted a technology platform connecting lenders and merchants. The idea would be to enable merchants to provide their customers with a wide range of credit options for online and in-store transactions.
How it works
In-store, prior to paying for his purchases, the consumer gets assistance at the cash counter to apply for a payment facility; or, if conducting an online transaction, chooses an instalment option.
This application requires that some personal information be provided.
It is then sent to all lenders on Vyze platform, to spot the best offer available.
When identified, this offer is displayed on the in-store POS device, or online.
If agreed upon, the amount can then be used to carry out the transaction.
In order to streamline connections, Vyze relies on a set of APIs. They claim a 90% approval rate for their financing offers.
An expanding market. Customers are increasingly seeking alternative financing options at checkout. Merchants and financial institutions must then make adjustments. According to Accenture, these solutions may bring about a $1.8+ billion opportunity in the US.
Streamlining application processes. Vyze’s idea is to help their partners sell consumer credit offers, while making things easier for merchants who may not be used to selling financial products. Through this purchase, Vyze will be able to enter additional markets and aim for Mastercard customers outside of the US.
For Mastercard, the point is to enter an increasingly competitive market. Vyze will help them boost their set of offers for banks and other financial partners, with a solution famous for impacting average cart amounts: additional opportunities for Mastercard to increase their payment volumes.
This payment specialist announced multiple acquisitions to assist merchants and enhance customer experience. Less than a month ago, they acquired Ethoca to help merchants identify and address e-commerce fraud cases. Likewise, and by way of including a rival means of payment, too, Mastercard bought out Vocalink, British instant credit transfer specialist behind Pay by Bank.
Just like Vyze, several FinTechs now bet on in-store instalments: Klarna partnered with H&M, Afterpay teamed up with JPMorgan Chase and Affirm recently announced an agreement with Walmart.