The Problem
For Buy Now, Pay Later lenders, merchant onboarding and scaling poses significant challenges. It’s time-consuming to cultivate technology relationships and complete integrations. Lenders are looking for faster and easier ways to onboard new merchants, and more flexible ways to provide their customers a better user experience.
The solution
Lending solutions based on modern virtual cards work seamlessly with customers’ mobile wallets and merchants’ POS systems to fund purchases in real time.
Real world: Buy Now, Pay Later financing
Shoppers apply for and receive financing at checkout
Application submitted
Your customer applies for a loan to make an on-the-spot purchase.
Card issued
A prefunded virtual card is issued for that specific purchase.
Card presented
The store runs the virtual card just as they would any other Visa or Mastercard.
Spend evaluated
Managed or gateway spend controls can be customized for the exact merchant and the start/end date of the installment loan to minimize fraud.
Auth requested
Marqeta’s platform is contacted by the appropriate network for authorization.
Notification received
Marqeta webhooks allow real-time notifications upon transaction completion.
Funds released
Just-in-Time (JIT) Funding releases funds to the card on approval and in real-time to complete the transaction.
Transaction completed
Authorization is successful and the payment is confirmed.
Application submitted
Your customer applies for a loan to make an on-the-spot purchase.
Card issued
A prefunded virtual card is issued for that specific purchase.
Card presented
The store runs the virtual card just as they would any other Visa or Mastercard.
Spend evaluated
Managed or gateway spend controls can be customized for the exact merchant and the start/end date of the installment loan to minimize fraud.
Auth requested
Marqeta’s platform is contacted by the appropriate network for authorization.
Notification received
Marqeta webhooks allow real-time notifications upon transaction completion.
Funds released
Just-in-Time (JIT) Funding releases funds to the card on approval and in real-time to complete the transaction.
Transaction completed
Authorization is successful and the payment is confirmed.
“Afterpay looked at the field of providers out there and really liked Marqeta from a technology reputation and its ability to deliver innovation. We focus on how we use Marqeta’s capabilities to speed up access into merchants. We connect directly to most of our merchants. Through Marqeta, Afterpay will be able to more easily integrate into those merchants.”
Key benefits for Buy Now, Pay Later financing
Instant issuance of virtual cards
Fund a prepaid virtual card for the exact amount and pay within seconds of the borrower’s approval, in-store or online.
Machine-to-machine transactions
Start payment cycles without the need to integrate beforehand with a merchant’s POS system wherever Visa/Mastercard is accepted.
Dynamic spend controls
Limit transaction approvals to a specific merchant or time using controls such as a date or a start and end time.
JIT (Just-in-Time) Funding
Ensure that funds are spent for a one-time transaction or an installment payment of an approved loan.
Inject metadata into each transaction record
Streamline the reconciliation of transaction records with the lender’s general ledger (GL) and loan management system (LMS).
Data insights
Get insights into customer spend and offer targeted funding options and grow loyalty.
