Visa is to launch its Visa Installments payments service in Canada, enabling consumers to choose to pay for purchases made using their credit card in smaller instalments over a specified period of time.
“Visa Installments aims to provide an innovative, differentiated solution that will help the payments ecosystem meet the increasing demand for buy now, pay later alternatives,” the card network says.
“Eligible cardholders will have expanded purchasing options, empowering them to decide how and when they may pay for items with the cards already in their wallets/digital wallets.
“Shoppers can leverage existing credit with their banks, without submitting new loan applications, credit checks, or downloading a new app.”
Holders of Scotiabank Visa credit cards will be the first in Canada to be able to use the service via the bank’s ScotiaPay instalment payments option.
ScotiaPay will let eligible cardholders split qualifying purchases they have already made with their cards and is due to launch in August 2021.
“Later this year, Visa is also planning to launch Visa Installments with Canadian issuers at participating merchants during the checkout process,” the card network adds.
“This will provide those issuers’ customers making a qualifying purchase with their credit cards the choice to pay in instalments during their transaction.
“Offering instalments at checkout has been proven to increase the average purchase total and shopping cart conversion rate.
“With a single integration, merchants may enable instalment offers for eligible cardholders from participating issuers, without customers needing to sign up for a new service.”
Visa began piloting its instalment payments service in Russia in July 2020.