Mastercard Introduces Loan on Card to Expand Lending Opportunities

Mastercard has unveiled a new partnership with lending and credit platform LoanPro to launch a solution, known as Loan on Card, that will empower lenders to extend credit in the form of loans to borrowers through physical and virtual card programs.

Loan on Card may prove to be just the tool that credit card issuers have been looking for as it offers a streamlined way to provide their customers with a solution that can compete with products from leading buy now, pay later outfits.

The solution positions lenders to gain more control over enabling loans, allowing them to couple the framework of fixed-term installment loans with the convenience that a Mastercard card provides, according to a press release from the global payments company.

From a borrower’s perspective, Loan on Card will offer them quick access to financing they can use anywhere that accepts Mastercard.

“The Loan on Card concept is a powerful example of how technology can simplify lending for financial institutions and borrowers,” Stefany Bello, Senior Vice President, Digital Partnerships, Fintech & Enablers, U.S., at Mastercard, said in the release.

Mastercard and LoanPro intend for both consumers and small businesses to access funds through Loan on Card. 

Mastercard Installments, as well as the company’s global payments network, will power Loan on Card. Mastercard hasn’t yet issued a firm release date for the new solution saying only that it will hit the market sometime in 2026.

Though Loan on Card is a new solution, Seema Chibber, Executive Vice President, Product & Engineering, North America at Mastercard, indicated the company had something planned in the installment realm during an interview she gave to PYMNTS earlier this year.

“We’ve literally seen an explosion in the preference for installments,” Chibber said, revealing that Mastercard wanted to get ahead of this trend.

Mastercard revealed earlier this year that it was investing in initiatives in response to people’s affinity for installments.

“That is why we’ve been investing in capabilities that are versatile, so whether it’s a buy now, pay later option offered by a fintech, a traditional issuer’s credit program, or a debit-based solution, Mastercard is embedding installments right into the payments experience,” she added.

Mastercard will likely provide additional details about Loan on Card before it officially releases the solution, but it’s safe to say that it will, at the very least, give credit card issuers a new defense against losing payment volume to BNPL programs.

The BNPL space has grown by leaps and bounds in recent years. But the market for BNPL is still new enough that partnerships such as the one between Mastercard and LoanPro, and the solutions they produce, have the potential to make a big splash with the general public and expand the usefulness of cards.