Mastercard has teamed up with LoanPro, a digital lending platform, to create Loan on Card, a new solution that makes it easier for lenders to give out funds and for borrowers to get installment loans. The solution is set to launch in 2026.
Loan on Card integrates the structure of fixed-term loans with the broad acceptance of the Mastercard network. Lenders will be able to issue funds directly to a virtual or physical card, fastening the process along with avoiding slower methods like ACH transfers.
Key Features:
- For Borrowers: They will get instant access to funds, which can be used online or in-store wherever Mastercard is accepted. The loan will have a set repayment schedule, with no revolving balance. Borrowers can also add the card to a mobile wallet for easy use.
- For Lenders: They can have more control over the loan process while offering a more modern experience for customers. Lenders can send funds directly to a digital wallet, avoiding complicated transfer steps.
This partnership is aimed at modernizing the lending process, making it quicker and more flexible to meet the needs of today's digital economy.
Executive Statement
According to Stefany Bello, senior vice president, digital partnerships, fintech & enablers, U.S., at Mastercard, the Loan on Card concept is a powerful example of how technology can simplify lending for financial institutions and borrowers. Together, Mastercard and LoanPro intend to help lenders to deliver flexible funding to consumers and small businesses with the reach and trust of the Mastercard network.
According to Rhett Roberts, CEO and co-founder of LoanPro, empower lenders to innovate while maintaining full control over the customer experience.