Visa and StanChart streamline instalment payments for Asia Pacific credit cardholders | The Asian Banker
Sunday, 3 March 2024

Visa and StanChart streamline instalment payments for Asia Pacific credit cardholders

5 min read

Visa and Standard Chartered have entered into a regional partnership to accelerate the seamless delivery of instalment payment options to the bank’s Visa credit cardholders across markets in Asia Pacific using Visa instalment solution.

With Visa instalment solution, the bank’s credit cardholders will have the flexibility of choosing “buy now pay later” (BNPL) options in Asia Pacific, allowing them to split purchase repayments at the point of purchase at participating in-store or eCommerce merchants. With this partnership, Standard Chartered Visa credit cardholders can begin using this facility in Malaysia, and in Singapore next year. Standard Chartered also has plans to expand into additional markets thereafter.

Visa instalment solution is a network solution which seamlessly enables existing credit lines to be converted into BNPL options at checkouts, giving cardholders myriad ways to pay for their purchases more conveniently. The increased flexibility and convenience to cardholders could in turn influence consumers' decision to purchase, thus potentially increasing transactions at point of purchase.

Serene Gay, group country manager for Singapore, Malaysia and Thailand, Visa said: “BNPL is an established, yet growing trend in Asia Pacific. As a world leader in digital payments, Visa is delivering a seamless instalment network solution to address the growing demand of consumers for this financing option at point of purchase. Additionally, we see that banks recognise the value of incorporating Visa instalment solution as a value-added service to their cardholders to enhance their purchasing decisions and shopping experience. We are delighted to be working with Standard Chartered to empower Visa credit cardholders across the region with repayment flexibility, so that they can decide how to pay for their purchases in-stores and online.”

For cardholders, BNPL options give them the ability to split their purchases into equal monthly payments, thereby offering wider options for management of their finances. As a short-term financing instrument, BNPL repayments are typically interest-free, allowing consumers to pay for their purchases over time (up to 36 months) in regular instalments.

According to Visa research on BNPL adoption in its Asia Pacific Green Shoots Radar Regional Report, there is increasing awareness of BNPL platforms in the entire region, with highest usage among millennial consumers, followed by Gen X and Gen Z. Such use has been mostly driven by affordable monthly payment amounts, no/low interest fees and easy set-up.

Consumers used instalment options most to buy personal electronics, household electronics, luxury goods, personal shopping and furniture. Options offered by banks and credit cards were most popular, followed by non-bank players such as retailers and BNPL brands.

Manoj Piplani, global head, personal banking, and credit cards and personal loans, Standard Chartered said: "We are committed to delivering easy banking solutions with great client experience. With this strategic partnership, Standard Chartered customers in the region can split their payments in instalments on various Visa instalment solution-enabled online and in-store merchants to meet their lifestyle needs. This simple, convenient and secure approach will elevate the retail experience and give customers the control on how they want payments to be made.”

 

Re-disseminated by The Asian Banker

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