Payments provider ic2 has partnered up with VISA to launch point of sale buy now, pay later (BNPL) credit options. Via the collaboration merchants may gain access to a BNPL option to pay in installments instead of all at once or by credit card.
BNPL has emerged as a serious challenge to the credit card ecosystem as retailers can provide a choice in how an item is paid for. Certain higher-cost items may be a better fit for consumers who can benefit by making installment payments, that can be interest free, as opposed to paying with an expensive credit card.
Participating i2c issuers offering Visa credit cards can provide their cardholders the choice to pay with installments during online checkout. This capability can be integrated into the point of sale and offers cardholders the option to convert larger purchases into smaller equal payments made over time, thus helping to drive more sales.
“Customers love the flexibility of being able to pay over time with installments, as evidenced by the rapid growth in the space,” said Mary Kay Bowman, global head of buyer, seller, core and platform products at Visa. “At Visa, we’re working with partners like i2c to accelerate the distribution of more BNPL payment options for consumers, issuers and merchants around the world.”
Ava Kelly, Global Head of Products of i2c, said that BNPL is now must have.
CB Insights estimates the total U.S. BNPL volume could reach $1 trillion by 2025, or 10 to 15 times current levels.
