Visa Partners With Nuvei, Tender Retail on BNPL Expansion

Visa has launched a pair of collaborations designed to bring its “Installments” program to more cardholders to meet a growing demand among Canadian consumers for installment offerings.

“With Installments enabled by Visa, consumers have the option to convert qualifying purchases into smaller, predictable installment payments made over a defined period using an eligible credit card,” the company said in a news release Tuesday (Oct. 18).

In the months ahead, consumers will be able to choose Installments at some of the largest retailers in Canada, including Simons, Canada Computers, Soft Moc and Trévi.

With the launch, Visa has teamed with payment technology business and acquirer Nuvei to help credit cardholders access to Installments through Nuvei’s retailer network in Canada.

Meanwhile, Visa and Tender Retail, a provider of middleware payment solutions for enterprise retail, are aiming to bring Installments “to their suite of retailers looking to expand in-store payment options and unlock untapped spending power.”

Visa said its research shows that when Installment options are available at the checkout, retailers see an increase in spending and more shoppers complete their purchases.

See also: PYMNTS Intelligence: How BNPL Is Shaping Consumer Buying Behavior

That’s in keeping with PYMNTS’ research, which has found that consumers abandon up to 75% of online shopping carts, and reducing that rate offers retailers a significant opportunity to boost sales and revenues.

Many factors can affect cart abandonment, from difficult website navigation to a slow shopping process, but 6% of consumers abandon carts because of a lack of payment options, while 18% give up because of price. Adding BNPL to retailers’ payment offerings can ease both concerns and could even encourage buyers to make more purchases.

BNPL has gained traction among consumers overall as a low-friction and easy payment option. A PYMNTS survey found that 42% of consumers expressed interest in BNPL because of its ability to spread payments over time, while a third of them said they were attracted by its ease of use and convenience.

BNPL also reduces the friction associated with increasing the amount of a customer’s final purchase. Nevertheless, BNPL has frictions of its own to deal with. As BNPL gains in popularity more popular, it also becomes a bigger target for bad actors, and BNPL providers, like all payment providers, will need to balance convenience with security.