Marqeta and Scalapay Partner to Boost Buy Now, Pay Later Adoption Across Europe

Marqeta, a prominent card issuer, has joined forces with Scalapay to expand the adoption of the buy now, pay later (BNPL) model in Europe. This exciting collaboration, unveiled on Tuesday, October 17, will witness Marqeta collaborating with Scalapay, a BNPL firm with a robust presence across Europe, to issue virtual cards facilitating online and in-person transactions, as outlined in PYMNTS news.

According to Marqeta’s press release, the BNPL concept remains widely popular, with a significant portion of consumers surveyed expressing a preference for this payment method over traditional credit cards. The release highlights the enhanced shopping experience provided by Scalapay through the integration of Marqeta’s innovative Just-in-Time Funding feature. This feature enables the instantaneous creation and funding of a virtual card for the exact loan amount as soon as a Scalapay customer is approved for their loan and completes a purchase.

Furthermore, this virtual card can be promptly utilized for both online and in-store payments via a digital wallet or existing checkout/point-of-sale systems. This collaboration effectively expands the range of partners where customers can leverage BNPL financing for their purchases.

Simone Mancini, CEO of Scalapay, expressed enthusiasm about the partnership, stating, «We are constantly seeking new ways to leverage modern payment technologies with the aim of creating a seamless experience for our customers. Marqeta’s technical acumen and scalable platform are an ideal partner for us in supporting our partners to create better shopping experiences for their customers.»

While Marqeta has observed a growing preference for BNPL over traditional credit cards among some customers, research conducted by PYMNTS Intelligence suggests that credit card installment payments are still more prevalent, especially for larger purchases. This preference for credit cards can be attributed to the features they offer, which are currently lacking in the BNPL space. Notably, rewards were cited as the top feature that would enhance satisfaction among 38% of BNPL users.

Nonetheless, the research, conducted in collaboration with AWS, indicates a significant surge in BNPL usage in the coming year. Among current BNPL users, 43% plan to continue using this payment method, while 15% of non-users intend to start using it, signaling a growing interest in BNPL as a credit alternative.

In addition to its BNPL endeavors, Marqeta is exploring growth opportunities in the card issuance and earned wage access (EWA) sectors. Marqeta CEO Simon Khalaf highlighted the company’s aspirations in various marketplaces, emphasizing opportunities in faster payments and EWA within labor marketplaces, creator platforms, and retail spaces.