Visa launches buy now pay later pilot in US

Visa has launched a US trial of its buy now pay later installments solutions.

A pilot project with global payments issuer TSYS will allow financial institutions to offer installment plans to their cardholders, marking the first case of an issuer technology partner integrating Visa’s pay by installment option for cardholders at checkout.

Commerce Bank will be the first bank in the US to begin the installments pilot on a limited number of Commerce Bank Visa credit cards, leading up to commercial launch in autumn this year.

The move comes amid growing demand for flexible and alternative payments solutions from customers and sellers as the COVID-19 pandemic continues to shape consumer shopping habits.

Many sellers have seen an increase in average ticket size and an increase in average conversion rate when installments are available as a payment option at checkout.

Flexible financing platform ChargeAfter will also launch Visa installments in the United States as part of the pilot scheme with two clients, 42nd St. Photo and Tire Agent, who are now offering Visa’s installments solutions to their US buyers.

ChargeAfter is also working with Cybersource, Visa’s global payment management platform, to bring installments payment capabilities to Cybersource sellers worldwide.

A blog posted to Visa’s website stated: “COVID-19 has accelerated an unprecedented shift to technology for consumers who want the convenience, speed and safety of digital technologies — from shopping online to tapping to pay, curbside pickup and in-app purchases.

“You can add installment payments to that list. Paying in installments, or having the option to pay in a set number of equal payments for something at the point-of-sale, is the latest convenience offered by Visa.”

It added: “In this rapidly-evolving space, financial institutions are looking for ways to increase their account holders’ loyalty. With Visa’s installment solutions, we are helping our issuer clients with several quick and elegant ways to respond to their customer demands for more choices in how they pay.”

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