Visa to pilot point-of-sale financing with merchants, banks across globe
Visa announced a pilot program to test point-of-sale financing for cardholders in different markets around the world.
Visa will issue a series of new APIs under the program, which will allow merchants and issuers to give cardholders the ability to make installment payments.
The move is part of a growing trend to offer POS financing to encourage consumers to make bigger purchases without damaging their credit with repeated inquiries.
"Visa installment capabilities are changing the game by allowing issuers to leverage an existing payment account customers already have and are familiar with, instead of asking them to submit to a credit check, download an app or open another line of credit," Sam Shrauger, senior vice president, global head of issuer and consumer solutions at Visa, said in a company release. "We expect installments to become a foundational method of payment at checkout for both domestic and cross-border commerce payment transactions."
Visa will work with payment platform CyberSource to support the installments pilot.
The participating companies in the pilot will be MakeMyTrip, which will be integrated with the Simpl platform and Kotak Mahindra Bank in India; Alpha Bank, eMag, ING Bank Romania and PayU in Romania; Russian Standard Bank in Russia and Abu Dhabi Commercial Bank and Mashreq Bank in the United Arab Emirates.
The installment plan is scheduled to roll out to various partners and clients of Visa by January 2020, the first of several new programs available through Visa Next.