Visa is working to advance buy now, pay later (BNPL) options to meet consumer demand and is collaborating with numerous issuers, acquirers and FinTechs to bring the payment solution to more people, according to a press release.
“For years, Visa has been enthusiastically embracing BNPL for the same reason we pioneered revolving credit, debit and prepaid decades ago: because it expands choice and convenience for buyers and sellers alike,” said Visa Senior Vice President and Global Head of Payment and Platform Products Mary Kay Bowman in the release. “If shoppers prefer a BNPL FinTech solution, we are here and enabling it; if they want an option from their banks, we’re helping offer those too.”
According to PYMNTS research in collaboration with Amazon Web Services (AWS), 29 million people in the U.S. have made purchases using BNPL in the past 12 months, and 59% indicated they would be willing to use the service if offered by a third-party vendor.
In another BNPL study that PYMNTS conducted in partnership with Sezzle, researchers looked at the alternative credit tool as a primary means to help struggling households. Some 65% of so-called second-chance consumers, or those whose credit scores are locking them out of traditional credit options, earned over $50,000 annually, and 30% made more than $100,000.
Further, the study showed that 70% of second-chance consumers familiar with BNPL “view it as an option that improves their ability to buy things they want without overspending. BNPL helps consumers stay within budget while empowering them to make purchases without the added burden of revolving credit.”
To help meet the demand for BNPL financing, Visa Installments Solution is being rolled out worldwide in stores and online, according to the release. The tool gives banks and FinTechs a network-based solution to add BNPL.
“Additionally, this week Visa announced that Klarna has signed a global brand deal with Visa to accelerate its expansion and scale in several markets,” the release stated.