Mastercard Installments update

You may remember that we contacted you last year to tell you about the launch of the Mastercard installments program, which allows your customers to split the cost of their purchase into smaller amounts paid over a longer period.

This Buy Now Pay Later experience will be available for domestic transactions in Australia, the United Kingdom, the United Arab Emirates and the Kingdom of Saudi Arabia to anyone with a Mastercard account. The service is already available in the United States of America.

What’s the update?

Previously, we communicated on behalf of Mastercard that you would not need to do anything to use this service. You would only need to take action if you did not want to offer installments as you would need to opt out.

This remains the case in the United States, the United Arab Emirates and the Kingdom of Saudi Arabia, however you will now need to take action if you would like to opt in to use the service in the United Kingdom or Australia.

What do you need to do?

Please contact your support team if you would like to opt in to the Mastercard installments program in the UK or Australia.

We may need some information from you to allow us to register your business, including:

1. Legal Entity Name
2. If you accept Apple Pay
3. If you accept Samsung Pay
4. If you accept Google Pay
5. Your URL

We may also need to confirm that other information we hold about your business is still correct.

Checkout.com will then submit the application to Mastercard and let you know when it has been set up.

What are the benefits?

• Boost sales: Mastercard’s research shows that BNPL solutions can increase average sales by 45 percent and reduce cart abandonment by 35 percent post-implementation*

• Liability shift: Widespread acceptance backed by zero liability fraud protection - not yet available through most current BNPL offerings

• Consumer adoption: Customers can buy now and pay later without using an alternative provider, who they may not trust or recognise

How does it work?

The Mastercard Installments program lets customers access a loan through installment program providers before completing their transaction.

You'll receive the full payment upfront from the consumer at the time of purchase - and the customer will pay the lending provider as per their agreed plan.

If your shopper chooses BNPL at checkout, they will be directed to the program provider's website or app to be pre-approved for the BNPL offer. They will need to accept the offer and the terms and conditions before selecting their repayment credentials or linking a bank account. Your shopper can then use this virtual BNPL card to make purchases online or instore anywhere that Mastercard is accepted.

Please see this Pricing and Interchange Bulletin for a full breakdown of costs relating to using Mastercard Installments.

Are there any exclusions?

The following MCCs are excluded from the installments program across all regions:

4829 - Money Transfer

6540 - Funding Transactions

6050 - Quasi Cash: Customer Financial Institution

6051 - Quasi Cash: Merchant

6012 - Merchandise and Services: Customer Financial Institution

6532 - Payment Transaction: Customer Financial Institution

6533 - Payment Transaction: Merchant

6536 - MoneySend Intracountry

6537 - MoneySend Intercountry

6538 - Funding Transactions for MoneySend

In addition to these, the following MCCs are excluded in the UK only:

8999 - Professional Services—not elsewhere classified

9311 - Tax Payments

7995 - Gambling Transactions

If you have any questions, do email us at [email protected] or reach out to your dedicated Customer Success Manager.