Card issuing platform, Marqeta has partnered with Scalapay to deliver Buy Now, Pay Later solutions across Europe in the form of issued virtual cards.
As part of a five-year exclusive contract, the firms said they are aiming to create a more seamless payments experience for both merchants and consumers. Virtual cards will be issued for both online and in-person transactions.
With Marqeta’s Just-in-Time Funding feature, once a Scalapay consumer is approved for their loan and completes a purchase, a virtual card is instantly created and funded for the exact loan amount. This card can be immediately used for payments both online and in-store through a digital wallet and via the existing checkout or POS. In a statement, the firms said the solution will expand exponentially the number of partners where customers can finance their purchases.
It comes a time when Buy Now, Pay Later (BNPL) continues to be a focal point of consumer interest globally. According to Marqeta’s fall 2022 State of Credit survey, more than 1-in-3 people (35%) surveyed said they now use BNPL more than credit cards, showing continued engagement with this lending vertical.
As Italy’s first fintech unicorn, Scalapay has seen significant momentum since it was founded in 2019, and has raised over $727 million in funding to-date. Scalapay’s pay in 3 or 4 installments’ products are said to reach more than 5 million users across Europe while its merchants have reportedly seen a 48% increase in average order value, increased cart conversion, and decreased abandonment rates.
“We are constantly seeking new ways to leverage modern payment technologies with the aim of creating a seamless experience for our customers. Marqeta’s technical acumen and scalable platform are an ideal partner for us in supporting our partners to create better shopping experiences for their customers,” said Simone Mancini, CEO, Scalapay said:
“We’ve seen customer demand for flexible payments continue to grow, and we’re proud to power Scalapay as they create more seamless shopping experiences for their users and help their merchants increase adoption,” Todd Pollak, Chief Revenue Officer, Marqeta, added.
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