Card issuing platform Marqeta has launched a partnership with Visa and Affirm.
The collaboration, announced Thursday (July 25), makes Marqeta the first U.S. processor to enable Visa Flexible Credential, a card offering that toggles between payment methods: debit, credit, cryptocurrency and pay-over-time options.
“Marqeta achieved certification with Visa Flexible Credential in May 2024, which will enable cardholders of Marqeta’s participating customers to easily set parameters or choose whether they use debit, credit, “pay-in-four” with Buy Now, Pay Later or even pay using rewards points,” the company said in a news release.
By giving consumers more payment choices, the company adds, Marqeta customers can “improve the consumer purchase experience and increase merchant acceptance.”
PYMNTS covered the Visa Flexible Credential rollout earlier this year, noting that even 10 years ago, the idea of one card that could access multiple forms of payment was “all about a battery-powered plastic card” with buttons representing various payment choices.
“For the consumer Flexible Credentials can work with any type of funding source the bank would offer you,” Mark Nelsen, senior vice president and global head of consumer payments at Visa, told PYMNTS CEO Karen Webster.
“Buy now, pay later would be one. Pay with cryptocurrency and paying with points would be two others. Whatever that banking institution will allow, the consumer would then have the option to choose the type of transaction and how they want it to be funded.”
Meanwhile, recent research by PYMNTS Intelligence shows that while 54% of acquirers — the financial institutions that process credit and debit card transactions for merchants — say they support card-linked installment options, the actual percentage is much lower.
Just 6% of acquirers surveyed truly offer installment plan payment options linked to credit cards before or during checkout, according to “Navigating New Norms: The Use of Card-Linked Installment Plans in Online and In-Store Sales,” created in collaboration with Splitit.
Only three out of the 50 acquirers surveyed offer pay later plans linked directly to credit cards, while 22% of acquirers surveyed cited third-party integration constraints as a barrier limiting their ability to offer credit card-linked installment options.
“The data on this variety in timing and type of pay later plan reveals a significant gap between perceived and actual capabilities, highlighting the need for enhanced direct integrations and more consistent installment offerings,” PYMNTS wrote.
In spite of these challenges, there’s still a lot of room for growth, as 60% of consumers show an interest in pay-later options at checkout.
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