Mastercard (NYSE: MA) and LoanPro announced a new strategic partnership to launch Loan on Card, a solution designed to enable lenders to deliver loans to approved consumer and small business borrowers through virtual and physical card-based experiences. Set to launch in 2026, Loan on Card will provide borrowers with “instant access to funds that can be used anywhere Mastercard is accepted.”
Currently being powered by Mastercard’s global payments network as well as Mastercard Installments Program, Loan on Card will “be structured to allow lenders to combine the structure of a fixed-term installment loan with the convenience of a Mastercard card.”
This approach will give lenders control “over loan enablement while providing borrowers with speedy access to funds.”
LoanPro will work with issuing banks and lenders “participating in Mastercard Installments in order to enable the launch of Loan on Card.”
The Loan on Card offering reflects the “evolution in the secular shift in lending.”
Traditionally, loan providers relied “on ACH transfers to disburse funds, a method that can have drawbacks of immediacy, flexibility, digital reach.”
The Mastercard LoanPro partnership aims to introduce “a digitized alternative for small businesses, similar to how other verticals like consumer payments have evolved to introduce digital offerings.”
The Loan on Card concept is designed “to enable lenders to deliver fixed-term installment loans to approved borrowers via a Mastercard Installments Credential and provisioned to a mobile wallet by default.”
Borrowers, whether individual or small business owners, “would have the ability to use the funds online or in-store.”
Repayments would be made in “predictable installments, without revolving balances.”
The Loan on Card offering also has the prospect of “strengthening relationships for lenders with consumer and small business customers by providing instant access to capital through permissioned data, new loyalty programs, while benefiting from the safety and security of the Mastercard network.”
Rhett Roberts, LoanPro CEO and co-founder said that Loan on Card has the potential to enabler “lenders to innovate while maintaining control over the customer experience.”
Roberts added that the launch of the Loan on Card program “will offer a new way for lenders to deliver loan funds directly to into the hands of consumers and small businesses via the Mastercard card in their virtual wallet on their phone, and ready to go.”
