With Visa Instalment Solution, the bank’s credit cardholders are to be enabled with the flexibility of choosing Buy Now, Pay Later (BNPL) options in Asia Pacific, allowing them to split purchase repayments at the point of sale at participating in-store or ecommerce merchants. With the partnership, Standard Chartered and Visa credit cardholders can start leveraging the facility in Malaysia, followed by Singapore next year and expansion plans into additional markets thereafter.
Per the press release, Visa Instalment Solution is a network solution that enables existing credit lines to be converted into BNPL options at checkouts, providing cardholders with multiple ways to pay for their purchases in an increasingly convenient manner. The upgraded flexibility and convenience to cardholders could in turn influence consumers’ decision to shop, which can potentially increase transactions at the point of purchase.
BNPL is an established, yet growing trend in Asia Pacific, and as it activates in the digital payments space, Visa is delivering a simplified instalment network solution to address the increased demand of consumers for this financing option at the point of purchase. Per a company spokesperson, banks recognise the incorporation of Visa Instalment Solution as a value-added service to their cardholders to enhance their purchasing decisions, as well as shopping experience. The official expressed excitement in collaborating with Standard Chartered to empower Visa credit cardholders across the region with repayment flexibility, allowing them to decide how to pay for their purchases both in-store and online.
BNPL options give cardholders the ability to split their purchases into equal monthly payments, thus offering extended options for financial management. As a short-term financing instrument, BNPL repayments are typically interest-free, enabling consumers to pay for their purchases over time (up to 36 months) in regular instalments.
As per Visa research on BNPL adoption of its Asia Pacific Green Shoots Radar Regional Report, there is a growing awareness of BNPL platforms within the region, with the highest usage being among millennials, followed by Gen X and Gen Z, driven predominantly by affordable monthly payment amounts, no/low-interest fees, and simple set-up.
Consumers leveraged instalment options most to buy personal and household electronics, luxury goods, personal shopping, and furniture, with the options offered by banks and credit cards being most popular, followed by non-bank players of the likes of retailers and BNPL brands.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now