Mastercard and LoanPro have partnered to introduce Loan on Card, a card-based lending solution that enables lenders to deliver loans to approved consumer and small business borrowers through both virtual and physical cards.
The solution, scheduled to launch in 2026, allows borrowers to access funds instantly, usable anywhere Mastercard is accepted, leveraging Mastercard’s global payments network and Mastercard Installments Program. Loan on Card combines the structure of fixed-term installment loans with the convenience of a Mastercard card, giving lenders enhanced control over loan distribution while providing borrowers with immediate access to capital. LoanPro will coordinate with issuing banks and lenders participating in Mastercard Installments to facilitate the program’s rollout.
A new digital approach to lending
Loan on Card represents a shift in lending practices, moving away from traditional Automated Clearing House (ACH) transfers, which often involve delays and limited flexibility. By embedding loans directly into card-based experiences, the partnership aims to simplify access to funds for consumers and small businesses, mirroring trends in other financial verticals where digital and instant payment solutions have become the norm.
The offering is structured to enable lenders to deliver fixed-term installment loans directly to approved borrowers via a Mastercard Installments credential, automatically provisioned to a mobile wallet. Borrowers can use funds both online and in physical stores, with repayments scheduled in predictable installments and without revolving balances. This approach provides lenders with opportunities to strengthen client relationships through better access to capital, permissioned data insights, and potential integration with loyalty programs. Leveraging Mastercard’s network also ensures secure and reliable transactions.
Market context and potential impact
The US small business lending market alone exceeds USD 600 billion annually, with an estimated 60% of loans issued through traditional bank channels using ACH transfers. Digitising loan disbursement through card-based solutions could significantly reduce friction, enabling near-instant access to funds. Similarly, the consumer installment lending market has grown rapidly in recent years, with global BNPL transaction volumes projected to surpass USD 911 billion by 2030. Integrating loans into widely accepted card networks could capture a portion of this expanding digital lending market, providing both speed and convenience while maintaining regulatory compliance and security standards.
