Visa (NYSE: V) has announced new collaborations across the payment ecosystem, “to bring Installments enabled by Visa to more eligible credit cardholders.”
With Installments enabled by Visa, consumers have the option “to convert qualifying purchases into smaller, predictable installment payments made over a defined period using an eligible credit card.”
In the coming months, consumers can soon “choose Installments enabled by Visa at some of Canada’s largest retailers including Simons, Canada Computers, Soft Moc, and Trévi.”
To add to these acceptance points and grow availability of this flexible payment option, Visa is working with global payment technology business and acquirer, Nuvei, “to provide more eligible credit cardholders with access to Installments enabled by Visa via Nuvei’s retailer network in Canada, which includes clothing retailers, travel services, and more.”
Visa and Tender Retail, a key player in middleware payment solutions for enterprise retail, aim to “bring Installments enabled by Visa to their suite of retailers looking to expand in-store payment options and unlock untapped spending power.”
Brian Weiner, vice-president and head of product and digital, Visa Canada, said:
“We’re excited to work with these organizations to provide eligible credit cardholders with more choice and flexibility in the way they want to pay. Together, we’re helping Canadian merchants stay competitive and ahead of ever-changing consumer preferences.”
Visa research found that, “when Installment options are available at the checkout, retailers benefit from an increase in spend and see more shoppers completing their purchases.”
According to an emerging payments report by Deutsche Bank, 46 % of customers “who use an Installments or Buy Now, Pay Later (BNPL) option at checkout, said their business would have been lost without the option, while 41% said they would have delayed their purchase.”
These latest collaborations “demonstrate the momentum installments is gaining in Canada and follow Visa’s recent announcements with Canadian issuers and acquirers, to make Installments enabled by Visa more accessible to eligible credit cardholders.” Adoption of installments in Canada “increased 30% in 20203 alone, and the in-country payment opportunity is expected to be about $50 billion annually.”
Globally, BNPL represents a growing portion of the payments market, accounting for over $1.7 trillion CAD of global payment volume.”