The Visa solution lets Australian shoppers access popular buy now, pay later (BNPL) financing via their existing ANZ credit cards.
The Visa Instalments Solution provides the underlying technology for issuers and acquirers in the Visa network to offer BNPL functionality to their customers. This means financial institutions can add BNPL as a feature for credit cardholders, on their already approved credit lines, in whatever terms are right for their customers. And likewise, acquirers on the network can activate the ability to accept instalments for any of their retailers that accept Visa. First launched as a pilot in 2019, the solution has expanded to the US, Canada, Malaysia, Russia and now, Australia.
When qualified shoppers use their ANZ Visa credit cards at the in-store terminal or while shopping online at participating merchants, they’ll be able to select a repayment term displayed on the screen during the purchase process. Quest, a provider of merchant payment technology, is working with Visa to enable businesses to accept Visa Instalments quickly and seamlessly — merchants with Quest-integrated point-of-sale (POS) software will not need to make any software changes to enable the solution.
A recent Visa survey found that 90% of participants showed a high likelihood of using an instalments option from their issuing bank, and 85% said instalments would improve their relationship with their card provider.
“There is overwhelming demand in Australia for BNPL financing through consumers’ existing, trusted financial institution,” said Julian Potter, Visa’s Group country manager for Australia, New Zealand and South Pacific. “We’re proud to work with our long-standing partner, ANZ, on the first rollout of Visa Instalments that has been built from the ground up — at the network level — to be deployed in-store and across e-commerce channels without the need for consumers or businesses to do anything new. Now Australians’ credit cards can buy now, pay later, too.”
“We are always on the lookout for products and services that add genuine value to our customers and the ability to make instalment payments is a key feature that many of them want,” ANZ head of cards and personal lending Mike Shurlin said. “Visa Instalments ticks all the boxes in terms of its flexibility, security and ease of use, allowing us to add more optionality and create better experiences for our credit card customers.
“We have worked with Visa on a number of customer solutions in the past, including a wide range of mobile payments and loyalty solutions, and we share the same focus: making payments simple, flexible and secure for our customers. We look forward to working with Visa to bring this exciting new payment option to our customers.”
Luke Fuller, head of SME and alternative payments at Quest, said the group is delighted to be working closely with Visa to offer instalment payments through its family of trusted payment terminals.
“In making this available through our omnichannel payment gateway solutions, retailers will be able to offer instalment payment options to their customers both online and in-store,” Mr Fuller said.