Installments - Overview

Our Installments solution allows Merchants to offer customers the option to pay for purchases over time in smaller, regular payments, rather than a single upfront payment.

Eligible Customers can be offered installment plans that they can choose based on various conditions. Once a customer selects a plan and completes their purchase, the Merchant is paid in full and the customer is then charged for the subsequent amounts.

Advantages of Installments include:

• Increased Sales & Conversion Rates

  Customers are more likely to complete purchases, especially large ones, if they can spread the cost.

• Higher Average Order Value

  By removing the barrier of a single large payment, customers can afford higher-priced items.

• Wider Customer Base

  Attracts customers who may not have the funds for an immediate purchase or prefer the flexibility of installment payments.

• Improved Customer Experience

  Offers a more convenient and flexible payment method that aligns with customer needs.

Below are some “real world” examples that can be enabled through our Installments solution. Please note that these are examples and this does not cover all use cases.

Use case #1:

• Large Appliance Purchase: A consumer buying a new refrigerator for $1,500 could choose a 6-month installment plan. This would break the cost into six equal payments, making the purchase more manageable for their budget.

Use case #2:

• Seasonal Demand - A merchant selling seasonal products can offer installment plans to help customers afford purchases during peak moments such as the holidays. This can drive urgency-based sales, improve customer satisfaction and increase revenue

Use case #3:

• Subscription Upgrades and Add Ons - A Merchant offering an online education platform can provide installment plans for premium add-ons. This allows customers to spread the cost over time which can increase the likelihood of upgrades and improve customer retention.

There are currently two Installment Services we offer today :

1. Issuer -Based Installments - These installment plans are agreed upon by the Merchant and issuers. If a cardholder meets the configured criteria, the eligible plans will be displayed for the customer to accept and complete their purchase.

2. Visa Installments - Installments are offered by participating banks and are enabled by Visa. If a cardholder has an eligible Visa card and makes a qualifying purchase at a participating merchant, they will be presented with the option to choose an installment plan at checkout. The cardholder can then accept the terms and complete their purchase.

Please be sure to check with your account manager for on which Installment service is available to you.

At a high level, all installments services will have the following flow:

To get started with Installments, see our guide.