What happened
Shares of payment-card titan Mastercard (MA -0.08%) outpaced the broader stock market on Wednesday. The company's stock notched a 2.9% gain on the day, beating the 2.2% rise of the S&P 500 index.
The well-capitalized company is an important component of the S&P 500 and often moves in concert with it. Its index-beating performance Wednesday is related to a fresh piece of company news.
Image source: Getty Images.
So what
That morning, with obvious pride, Mastercard published an updated list of partner companies of its buy now, pay later (BNPL) program. This form of financing, which has become increasingly popular with consumers lately, allows cardholders to split larger purchases into a set of regular payments instead of paying the full price immediately at the register.
Partners specifically mentioned by Mastercard include pharmacy-operator Walgreens Boots Alliance, outdoor-activities retailers Cabela's and its owner/peer Bass Pro Shops, and clothier Saks Fifth Avenue.
In the press release touting that expanding-partner lineup, Mastercard quoted its president of North America Linda Kirkpatrick as saying that:
Mastercard is uniquely positioned to enable lenders and merchants to deliver seamless and secure BNPL experiences at scale. Our diverse new partners represent the versatility and agility of our BNPL program, and we're excited to work together to make BNPL available to millions of consumers worldwide.
Now what
Thanks to technology and the flexibility it brings to shoppers, the world of consumer finance is changing rapidly. Over the past few years, Mastercard has proven to be adept and opportunistic at catering to the latest tastes. BNPL is a hot segment right now, and the company deserves kudos for determinedly pushing into it.
