Installments: Consumers can buy now and pay later

Visa is developing installment solutions

In the near future, Visa will be releasing capabilities on Visa Developer to allow clients to develop and pilot installment experiences to offer to their customers.*

Introduction to installment payments

Installment payments (installments) refer to the option to pay for purchases over time by dividing the purchase amount into smaller equal payments. Consumers will typically use installments to buy media and large ticket items (e.g. electronics, furniture). But in some markets, they may even use them to make everyday purchases (e.g. groceries, retail). So, what’s the key benefit for consumers with installments? They get to spread their purchases, including transparent fees, into periodic (usually monthly) repayment amounts.

Common installment payments models

There are three primary models in the global installment payments landscape: Pre-Purchase, During Purchase and Post-Purchase. These models differ by when the consumer is offered installments, who presents the installment payments plan, and who pays for the cost of providing credit.*

Visa’s installment solution can provide benefits for all parties in the ecosystem

Installments is a large and growing opportunity

Globally, installments represented $1.2T in market value in 2017. And it’s growing quickly–up 8% over last year. That’s faster than all other lending products (e.g. mortgages, auto). And twice as fast as credit cards.

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