Financial services provider Mastercard has acquired Vyze, a cloud-based financing technology company for retailers, to boost its consumer financing services.
Image: Mastercard acquires Vyze to boost its consumer financing services. Photo: Courtesy of MasterCard.
According to Mastercard, Vyze is a disruptor in point-of-sale (POS) payments, as it connects merchants with multiple lenders, allowing them to provide a wide range of credit options to their customers, online and in-store.
The financing options offer shoppers with additional payment flexibility at the moment of purchase, adding to Mastercard’s existing payment solutions.
Mastercard quoted research from Accenture stating that more and more customers are seeking alternative financing options and merchants and financial institutions have to deliver such services at the point of sale. It is estimated that such solutions in the US alone account for more than $1.8 trillion opportunity.
Mastercard global acceptance executive vice president Blake Rosenthal said: “Both consumers and businesses want the best choice and service, exactly when they need it.
“Vyze adds to our ability to empower banks and other lending partners to participate in the growing trend of retail financing. The combination of their platform with our technology and network complements our existing payments programs.”
US-based payment services provider believes that the acquisition can place Mastercard as a strategic partner to both lenders and merchants, offering a better checkout experience for shoppers. Furthermore, Vyze’s technology can better facilitate lending options to merchants’ customers, with up to 90% of approval rates.
Vyze platform allows lenders and merchants to ‘integrate once and innovate forever’ through its APIs. Previously, managing and maintaining a range of customer payments and financing options needed significant time and investment, said Mastercard.
Vyze CEO Keith Nealon said: “Mastercard has a long history of building an incredibly powerful network, connecting some of the world’s most influential financial institutions, merchants and innovators. With their relationships and scale, we see a great opportunity to reach exponentially more partners and consumers.”
Last month, Mastercard acquired Canadian fintech Ethoca, which supports merchants and card issuers to quickly identify and resolve fraud in digital commerce. Ethoca’s suite of products will complement Mastercard’s commitment of providing greater protection in the digital space.