Visa has developed installment solutions
Visa has released capabilities on Visa Developer Portal to allow clients to develop and pilot installment experiences to offer to their customers.*
Introduction to installment payments
Installment payments (installments) refer to the option to pay for purchases over time by dividing the purchase amount into smaller equal payments. Consumers will typically use installments to buy medium and large ticket items (e.g. electronics, furniture). But in some markets, they may even use them to make everyday purchases (e.g. groceries, retail). So, what’s the key benefit for consumers with installments? They get to spread their purchases, including transparent fees, into periodic (usually monthly) repayment amounts.
Common installment payments models
There are three primary models in the global installment payments landscape: Pre-Purchase, During Purchase and Post-Purchase. These models differ by when the consumer is offered installments, who presents the installment payments plan, and who pays for the cost of providing credit.*
Visa’s installment solution can provide benefits for all parties in the ecosystem
Installments is a large and growing opportunity
Globally, installments represented $1.6T in market value in 2020. And it’s growing quickly - up 5% YoY. In contrast, credit card expenditure declined by 4% globally.