Fintech company Visa: Promoting “buy now, pay later” globally

Amid growing consumer demand for “buy now, pay later” (BNPL) solutions, fintech company Visa recently announced that A growing number of card issuers, bill collectors and fintech companies are leveraging Visa’s technology — Visa Installments Solution and Long-term Fintech Solutions — to offer “buy now, pay later” options to their customers.

Visa Installments Solution provides card issuers and bill paying agencies within the Visa network with basic technology to provide BNPL capabilities to their customers.

This means that the financial institution can use the credit limit already approved by the credit card holder to add BNPL to their feature in any way that applies to their customers. In the same way, the Visa network may enable all retailers that accept Visa payment to accept installment payments.

A recent study by Visa found that nearly half (42%) of consumers around the world express interest in installment financing offered by existing credit cards or credit cards that can be applied for.

Visa’s survey shows that interest in future installment plans is high in all the countries tested and exceeds current penetration, highlighting the huge opportunities for the BNPL option in the future. Studies show that offering BNPL options at checkout increases spending and more buyers complete their purchases, benefiting retailers.

To help partners meet this need, Visa installment solutions are being deployed globally to enable BNPL options offered by card issuers to be applied to brick-and-mortar and e-commerce channels.

With this web-based solution, financial institutions can add BNPL customization to credit card holders based on their approved credit limit. Similarly, the billing agencies in the network can activate features to offer installment payments to any retailer that accepts Visa.

In North America, Visa is working with Canada’s Moneris, CIBC, Commerce Bank, Desjardins Group(Desjardins), Equinox Payments, I2C, ScotiaBank and Versapay teamed up.

In Australia, visa has partnered with ANZ, a super-large financial institution, and Quest, a payment service provider for merchants, to expand Visa installment payment services in Australia.

In Russia, Visa has teamed up with Home Credit Bank and Russian Standard Bank. Visa also works with Cybersource, FIS, Global Payments, and TSYS to implement Visa installment solutions in multiple markets around the world.

The global roll out of Visa’s installment solution increases Visa’s support for today’s leading BNPL fintech companies: Afterpay, ChargeAfter, Klarna, Paidy, Sezzle, SplitIt, and Zip.

As early as 2017, Visa’s fintech initiative has driven the growth of its installment business globally. With Visa Installments Solution, Visa will now bring the flexibility of BNPL consumer finance services to cards that already exist in eligible consumers’ wallets and mobile phones for in-store or online checkout.

Additionally, Visa announced this week that Klarna has signed a global branding agreement with Visa to accelerate expansion and scale in multiple markets.