SoFi Announces Mastercard Partnership for Aggressive Move Into BNPL

Fintech standout SoFi Technologies recently made waves with the release of its Pay in 4 service, a new program based on the popular buy now, pay later (BNPL) offerings released by rival companies such as Klarna and Affirm. Those waves gained more power with the announcement of a new partnership with Mastercard, which according to a company announcement will mean that Pay in 4 will be usable by SoFi customers everywhere Mastercard is accepted.

"SoFi is already a diversified provider of digital financial services,” said Eugene Simuni, Managing Director of the independent research boutique MoffettNathanson, in a recent interview. “BNPL product adds to the breadth of SoFi’s products and will help SoFi strengthen user engagement and acquisition.”

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At the same time, Simuni cited the growing trend of retailers and financial institutions launching their own BNPL options, and suggested that for SoFi this partnership’s “financial contribution is unlikely to be material in the near term.”

The move comes at a time when SoFi is still awash in the lingering effects of the 2022 fintech downturn. With investors selling off SoFi stock at a rapid pace, driving its price close to an all-time low, Chief Executive Officer Anthony Noto has been snapping up his company’s shares to boost confidence for the new year.