Mastercard announced Tuesday that it has acquired Austin-based Vyze, a cloud-based financial technology company.
The financial terms of the deal were not disclosed. Vyze, founded in 2008, has raised $48.1 million to date.
Vyze works with lenders to provide consumer finance products like branded store credit cards, installment loans and lease to own payment plans. It is available in thousands of stores throughout the U.S. It’s also available through online stores and call centers.
“Vyze shakes up traditional models by connecting merchants with multiple lenders, allowing them to offer their customers a wide range of credit options online and in-store,” according to Mastercard. “These financing options provide shoppers with additional payment flexibility at the exact moment of purchase, complementing Mastercard’s existing card and ACH-based solutions.”
“Both consumers and businesses want the best choice and service, exactly when they need it,” Blake Rosenthal, executive vice president of global acceptance at Mastercard, said in a news release. “Vyze adds to our ability to empower banks and other lending partners to participate in the growing trend of retail financing. The combination of their platform with our technology and network complements our existing payments programs.”
The acquisition gives Mastercard even more ways to serve merchants and lenders. Vyze’s platform provides retailers with a one-stop solution for payments and financing customer purchases.
“Shoppers looking for new ways to pay and merchants looking to sell higher ticket items and deter abandonments has driven a flurry of activity in the ‘Buy Now, Pay Later’ market,” Raymond Pucci, director of merchant services practice at Mercator Advisory Group, said in a news release. “This acquisition creates a new market making approach that supports operation at scale, helping banks offer and merchants shop for the terms that best fit their needs. Mastercard’s existing relationships will assure both take a serious look at this new solution.”
Several top U.S. retailers work with Vyze for special financing options.
“Mastercard has a long history of building an incredibly powerful network, connecting some of the world’s most influential financial institutions, merchants and innovators,” Keith Nealon, CEO of Vyze, said in a news release. “With their relationships and scale, we see a great opportunity to reach exponentially more partners and consumers.”
