According to PYMNTS.com, Mastercard and fintech software company LoanPro are launching a new “Loan on Card” program. The initiative, powered by Mastercard’s global network and its Mastercard Installments program, will let lenders combine fixed installment loans with the convenience of a Mastercard card. LoanPro will work with issuing banks to enable the launch. For borrowers, it means instant access to loan funds that can be used anywhere Mastercard is accepted, directly through the card in their digital wallet. Mastercard first launched its Mastercard Installments program as a BNPL play back in September 2021. Executives like SVP Stefany Bello and EVP Seema Chibber say the move addresses an “explosion” in demand for flexible, digital-first installment options.
The BNPL landscape just got more crowded
Here’s the thing: this isn’t just another buy now, pay later product. It’s a strategic move to embed lending deeper into the payment rail itself. Mastercard isn’t becoming the lender; it’s providing the infrastructure so that any bank or lender in its network can easily offer these digital installment loans. That’s a huge shift. It turns every Mastercard-accepting merchant into a potential point-of-sale for a loan, without the merchant having to directly integrate with Affirm or Klarna.
So who wins? Well, Mastercard obviously does. It gets more transaction volume and cements its role as an essential utility. Lenders win because they get a new, potentially lower-cost customer acquisition channel. But the traditional BNPL pure-plays? This is a direct threat. Why would a big bank partner with Klarna when it can use Mastercard’s rails and keep more of the economics in-house? This brings the scale of the card networks squarely into the installment fight.
Convenience vs. consumer trap?
Now, the big question: is this good for consumers? The “instant access” and “use anywhere” sound incredibly convenient. Need to cover a car repair? The funds are right there on your card. But that’s also the danger. It blurs the line between transactional spending and taking on debt. Swiping for a loan feels very different from applying for one. The risk of normalizing debt for everyday purchases feels higher here than with store-specific BNPL.
Mastercard’s Seema Chibber talks about people seeking “expanded buying power, control and financial management.” And maybe for some, this is a tool for that. But let’s be real. For many, it’s just easier debt. The real test will be in the underwriting and transparency. If lenders using this program are clear on terms and responsible in who they approve, it could be a useful product. If it becomes a way to push high-interest credit onto people at the point of sale, well, we’ve seen that movie before. The convenience is undeniable. The financial prudence? That part is still up in the air.
