Mastercard will be able to help lenders with the underwriting process: If consumers give consent to the pay-later lender, Mastercard can provide a window into their checking and other transactional accounts - and that information can be considered as part of the approval process.

“Mastercard brings its existing global acceptance network to the table, potentially giving buy-now, pay-later solutions the ubiquity they have been seeking,” said Ginger Schmeltzer, a senior analyst for the research and advisory firm Aite-Novarica.Ĭustomers using pay-later options through Mastercard’s program will be provided with preapproved offers through their lender’s mobile banking app, or they may be granted instant approval at checkout.

Even existing pay-later players could plug into Mastercard’s program, if they chose to, which could broaden their reach - one of their biggest challenges.