Ally Bank’s personal lending arm Ally Lending has partnered with Mastercard’s alternative financing platform Vyze to expand financing into retail.

Ally, through this partnership, aims to enter into the point-of-sale (POS) retail financing segment and expand its footprint in healthcare and home improvement lending.

As part of the agreement, Ally Lending will be the first installment loan lender for thousands of retail merchants on the Vyze platform.

Vyze for Mastercard CEO Mitch Ferro said: “Partnering with Ally Lending allows us to continue to grow customer choice and payment flexibility in the retail sector.

“This opens the door for merchants to offer their shoppers a proven, trusted lending partner in Ally Lending, whose dedication to customer service and ‘doing right’ aligns with ours.

“This partnership will strengthen customer loyalty for the many retailers we work with.”

Using the installment lending solution offered by Ally, retailers can provide flexible payment options to end customers.

Shoppers will now be equipped with the required purchasing power to buy big and small-ticket goods and services.

They can spend up to $40,000, which they can repay within 6 to 60 months at a fixed monthly interest rate.

For merchants, the partnership provides a way to increase their sales by offering end customers choice, assurance and simplicity.

Ally Lending head Hans Zandhuis said: “Mastercard’s deep experience in global payment and technology, positions Vyze as a leader in the point-of-sale lending market.

“Together, our partnership gives merchants, who want to offer consumers trusted and stable installment loan options, a powerful, digital option.”