Citi and Mastercard Team Up to Bring Payment Flexibility to Millions of Cardholders

Citi is joining forces with Mastercard to bring more flexible payment options to cardholders at checkout. Through the partnership, people with Citi credit cards will be able to access the company’s pay-over-time tool, Citi Flex Pay, at the point of sale, according to a Mastercard press release. 

The strategy to offer payment flexibility to cardholders at the time of checkout shows credit card issuers how they can innovate to compete with emerging forms of payment.

Buy now, pay later (BNPL) programs have grown in popularity recently. A new survey from PayPal shows that 1 in 4 millennials and members of Gen Z use BNPL products regularly, and 50% of consumers plan to turn to BNPL solutions for a flexible payment option while completing their holiday shopping this year.

Michelle Gill, General Manager of Small Business and Financial Services at PayPal, said in the release announcing the survey that shoppers are more likely to complete a purchase when they know they can pay for it over time.

And data from Citi and Mastercard highlights how important it is for credit card companies to bring their customers flexible payment options.

Nearly 3 out of 4 cardholders who took part in a survey earlier this year said they’d be more likely to use a certain credit card if it offered them a plan to pay in installments.

According to a 2025 poll of U.S. credit card users, 74% of surveyed cardholders indicated that they’d be more likely to turn to a credit card to complete a purchase if it offered them an installment plan.

“The pay-over-time industry has continued to grow because it addresses a real consumer need for flexibility,” Abhinav Anand, Head of U.S. Value and Unsecured Lending at Citi, said in the press release. 

Citi cardholders who use Citi Flex Pay can and pay for purchased in monthly installments with their Citi cards. Accessing Citi Flex Pay at the point of sale serves to bring cardholders more convenience, but it may also allow merchants to reach new customers and close more sales.

“Merchants can enhance the shopper experience and boost sales by making flexible payment options like BNPL visible throughout the shopping journey,” Gill said in PayPal’s release.

By partnering with Mastercard, Citi is giving cardholders the option to pay for a purchase over time when they check out, whether they are shopping at a physical store or online.

Shoppers who use the tool can still enjoy other benefits, including protections against fraud, that Mastercard offers.

Citi cardholders who visit participating retailers will see an option to use Citi Flex Pay at the point of sale starting this year, according to the press release on the program, provided the merchant participates in Mastercard’s Installments Payment Services.

Anand said the solution brings real value to cardholders and is easy to use for parties on both sides of a transaction.

“Together with Mastercard, we’re now bringing even more access to flexible payments directly at checkout, creating a seamless experience for customers and retailers alike,” he added.