Marqeta (NASDAQ: MQ), a card issuing platform, this week announced a new partnership with Credi2 to provide an end-to-end installment platform designed for banks. It helps them deliver installment payments on cards to meet growing consumer demand for more flexible and seamless digital payment experiences.
Consumer and merchant demand for buy now, pay later (BNPL) installment solutions continues to grow. According to Deloitte, the BNPL market is forecast to become a €300 billion industry in Europe by 2025, making up about 11% of the continent’s e-commerce market. Marqeta’s recent State of Credit report found that 38% of UK respondents have used BNPL services to make ends meet during the last 12 months, increasing to 61% amongst 26-34 year-olds.
“We’re proud to partner with Marqeta to offer more flexible checkout options for cardholders in Europe, leveraging both of our experiences working with some of the largest banking and BNPL players in Europe,” said Christian C. Waldheim, co-CEO of Credi2. “Together with Marqeta, we’re enabling our customers to seamlessly integrate instalment capabilities directly into their applications, managing the heavy lifting of creating new payment offerings and bringing them to market much faster than legacy solutions.”
Developed in partnership with Visa, Credi2’s platform for loan originations, account management and servicing will integrate with Marqeta’s modern card issuing platform to empower banks to build flexible payment card programs that embrace digital trends and seamlessly issue and process virtual cards. As a result of this partnership, banks will be able to go to market more quickly with an end-to-end installment solution for their debit and credit card cardholders, saving valuable time and resources.
“Launching new payments solutions is incredibly time-consuming and complex, not to mention the stakes are incredibly high when dealing with stringent regulatory requirements and cross-border payments,” said Todd Pollak, chief revenue officer for Marqeta. “With Marqeta and Credi2, our bank customers will be able to focus on creating a delightful experience for their customers that gives them greater flexibility while we navigate the complexities on the backend. We’re proud to work with an innovative partner like Credi2 to bring more banks to the forefront of innovation in BNPL.”
By integrating payments directly to the bank’s app, cardholders could enjoy greater flexibility and use instalment payments both online and in-store. Cardholders will choose to pay in instalments either before the purchase is made, or post-purchase, with the cardholder splitting the payment directly in their banking app. Additionally, the solution will incorporate smart budgeting and responsible lending by linking to the existing card limit for each cardholder.
“Consumers seek a highly personalized, intuitive, and seamless payment experience that caters to their individual needs. The combination of Marqeta’s modern capabilities with the existing white-labeled installment solution developed by Credi2 in partnership with Visa, will empower financial institutions to meet these changing needs of their customers through modern and flexible propositions on cards,” said Federico Sanavio, head of credit products solutions & partnerships Europe, Visa. “All whilst enabling an embedded finance ecosystem.”
