# Mastercard Installments Credential
source: https://developer.mastercard.com/unified-installments/documentation/use-cases/mastercard-installments-program-with-merchant-participation/index.md

The Mastercard Installments Credential is a unique and innovative buy now, pay later (BNPL) program that delivers greater choice at checkout, both in-store and online. It follows the Mastercard multiparty model with the introduction of an Installment Program Provider (IPP) role and enables financial institutions and licensed lenders, fintechs, and BNPL players to offer a variety of flexible lending options to consumers across the Mastercard Network through a seamless, digital experience.

## Benefits {#benefits}

#### Enhanced experiences {#enhanced-experiences}

Provides a seamless, digital buy-now-pay-later experience

#### Wide acceptance {#wide-acceptance}

Offers an omni-channel experience across the Mastercard Network  

#### More payment choices {#more-payment-choices}

Gives consumers additional payment choices wherever they shop  

#### Flexible installment options {#flexible-installment-options}

Provides options like zero percent interest and the pay-in-four model

#### Find new customers {#find-new-customers}

Reaches new audiences that are looking for flexible payment options

Two flavors of Mastercard Installments are available for you to implement:  

1. Pre-approved offer delivered in lender app before purchase  
2. Real-time offer delivered at merchant checkout  

## Pre-Approved Offer Delivered in Lender App Before Purchase {#pre-approved-offer-delivered-in-lender-app-before-purchase}

The Mastercard Installments Credential can help customers see a faster path to market for an installment product without the cost of building acceptance relationships Merchant by Merchant. It enables IPPs to offer consumers pre-approved installment loans before completing a purchase at a participating merchant that accepts Installment Credentials when presented. The Installment Program Provider (IPP) is responsible for underwriting and servicing Installment Loans for each of the Registered Installments Programs that it participates in.

An Installment Credential may be issued as a virtual account number that provides access to a loan provided by an Installment Program Provider that will be repaid in installments. When the consumer enters into a lending agreement with the IPP, it provides the consumer with the installment plan and distributes the installment credential to the consumer. The consumer then selects the method by which they will repay the IPP, following which the consumer will be able to make a purchase transaction.

### How it Works {#how-it-works}

The following diagram illustrates the transaction flow of a pre-approved offer delivered in the lender app before purchase. This example is for demonstrative purposes only and may vary depending on the IPP's application or web interface.
Diagram howitworks

#### Workflow {#workflow}

1. The consumer logs into the Installment Program Provider (IPP) application and sees the installment offer on the home screen to finance a purchase and applies for the loan after reviewing the amount, payment frequency, loan terms, and conditions. A loan is provided by an Installment Program Provider (IPP) to a Consumer as per the Installment Lending Agreement.
2. After the IPP approves and creates the installment plan, they request the Installment Credentials from the Issuer by providing the reference and details of the installment plan. The installment credential provides access to a loan amount and maybe a virtual card.
3. The Issuer receives a request for issuing the credential for the installment plan. The issuer sets up the spend controls and limits for the credential. The issuer delivers the credential information to the IPP.
4. The IPP application or web interface displays the approval confirmation, plan details, and credentials to the consumer.
5. The consumer uses the Installment Credentials in the merchant checkout for purchases within the installment plan limits. The merchant acquirer submits the authorization request for the transaction to Mastercard. Mastercard checks the Merchant Participation in the Mastercard Installments Program. If the merchant has opted out, Mastercard declines the authorization and informs the acquirer and issuer with the decline reason code. If the merchant has not opted out, Mastercard sends the authorization request to the Issuer. The Issuer authorizes the transaction and sends information to the IPP. The acquirer receives the authorization response from Mastercard and sends the authorization response to the merchant. The merchant displays the payment confirmation to the consumer.
6. The consumer receives the goods and services in installments. The consumer also receives notification from the IPP that the purchase was made using the installment plan.
7. The IPP bills the consumers according to the installment plan, which includes the amount, repayment frequency, and loan terms.

## Real-time offer delivered at Merchant checkout {#real-time-offer-delivered-at-merchant-checkout}

The Mastercard Installments Credential enables IPPs to present installment offers during purchase at participating merchants. When the consumer applies for available offers on the payment and offers presentment screen, the IPP checks consumer eligibility, collects payment information, and approves the loan application. The consumer then completes the purchase on the merchant website, which gets converted into installments.

### How it Works {#how-it-works-1}

Diagram howitworks-2

#### Workflow {#workflow-1}

* The consumer enters their personal information (email address, mobile number, and billing information) on the merchant website and proceeds to the payment page.
* The merchant displays the Pay in Installments option on the payment page.
* The consumer clicks the Pay in Installments option.
* Eligible offers and the offer terms are displayed to the consumer.
* The consumer selects the lender/offer and clicks **Continue**.
* The consumer is routed to the IPP experience.
* The IPP authenticates the consumer, requests additional personal information as needed, and asks for repayment details.
* The IPP can ask the consumer to select an installment offer, if there are multiple offers available, such as Pay in 5, Pay in 12, or Pay in 24. This is applicable only if offer selection is disabled on the Offer presentment screen (step number 5).
* The IPP provides the repayment schedule and approval message for the installment request.
* The IPP also generates an installment credential associated with the purchase and provides it to Mastercard.
* The consumer is routed to the merchant's website to complete the purchase. Note: Mastercard recommends that onboarded merchants trigger authorization when the loan is approved and not provide a Place Order button to the consumer.
* The merchant receives the installment credential from Mastercard.
* The merchant triggers authorization on the installment credential.
* The consumer receives the goods and services in installments. 
* The transaction is converted into installments.
* The IPP bills the consumer's repayment credential according to the installment plan.

## Applicable APIs {#applicable-apis}

|                          Product                           |                                                                                                                                                                       API                                                                                                                                                                       |
|------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Pre-approved offer delivered in lender app before purchase | [Merchant Participation API](https://developer.mastercard.com/unified-installments/documentation/api-reference/mastercard-installments-services/inbound-api/index.md#apis)                                                                                                                                                                      |
| Real-time offer delivered at merchant checkout             | [Installments Plan API](https://developer.mastercard.com/unified-installments/documentation/api-reference/mastercard-installments-services/inbound-api/index.md#apis) [Installments Approval API](https://developer.mastercard.com/unified-installments/documentation/api-reference/mastercard-installments-services/inbound-api/index.md#apis) |