Marqeta and Scalapay have signed a five-year exclusive contract where Marqeta is set to issue virtual cards for online and in-person transactions, looking to simplify the payment experience for merchants and consumers alike.
Per the announcement information, Buy Now, Pay Later (BNPL) continues to be a focal point of consumer interest worldwide, with Marqeta’s 2022 State of Credit survey showcasing that over one in three people (35%) surveyed confirmed they currently leverage BNPL more than credit cards, highlighting continued engagement with the lending vertical.
Marqeta’s platform flexibility helps further enhance the shopping experience provided by Scalapay. By making use of Marqeta’s Just-in-Time Funding feature, once a Scalapay consumer receives approval for their loan and completes a purchase, a virtual card is created instantly and funded for the exact loan amount. The card can be used immediately for online and in-store payments through a digital wallet and via the existing checkout or POS, exponentially expanding the number of partners where customers can finance their purchases.
When commenting on the collaboration, Scalapay officials advised that the company is on the constant lookout for new ways to make use of modern payment technologies to create a simplified experience for its customers. The spokesperson believes Marqeta’s technical acumen and scalable platform to be an ‘ideal partner’ for Scalapay in supporting its partners to create improved shopping experiences for their customers.
The press release highlights that as Italy’s first fintech unicorn, Scalapay has seen significant momentum following its 2019 founding, having raised USD 727 million in funding to date. With over 5,000 stores and 7,000 physical points of sale, Scalapay’s ‘pay in 3 or 4 instalments’ products reach more than 5 million users across Europe, and its merchants have seen a 48% increase in average order value, increased cart conversion, and decreased abandonment rates. What is more, Marqeta is set to help expedite merchant onboarding by reducing friction at the point of sale and creating an increasingly fast and simplified experience for their end users.
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