Visa Introduces API for Installment Payment Solutions

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Visa is introducing application programming interfaces (APIs) that enable issuers and merchants to offer in-store and online payment solutions for purchases made with existing Visa cards, for a Press release.

US Consumer Sentiments Regarding Installment Loans and Alternative Financing

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The company is partnering with clients around the world such as CyberSource, Kotak Mahindra Bank, and PayU to test its APIs and plans to make them available to its customers and partners in January 2020 as part of Visa Next, your new platform for digital payment solutions.

This is what it means: Visa is responding to the popularity of point-of-sale (POS) financing and its threat to the company’s business.

Knowledge of POS financing options hasrisenin recent years, and consumers are interested in using them for all types of purchases. Half of US consumers would prefer to use an installment loan over other payment options for purchases under $ 250 , which means these deals are gaining traction for more than just big-ticket purchases.

And they’re poised to have a big effect: Business Insider Intelligence forecastsThe volume of e-commerce payments from online credit will increase from $ 27 billion in 2019 to $ 76 billion in 2024.

As alternative financing grows in popularity, particularly among the very young customers who do not have credit cards but are looking for more flexible forms of payment, POS financing platforms could steal share of credit cards in particular, which in turn poses a threat to networks such as Visa and its issuing partners, which are taking note and responding.

The largest photograph: Launching these APIs for in-store and online POS financing allows Visa to compete with both startups in the space and legacy rivals already chasing the market.

  • These offers can help prevent Visa from being disintermediated, especially as it is bringing its solutions to the store. As an established company with pre-existing business relationships, Visa is able to convince merchants to offer its POS financing solutions instead of, or at least in addition to, those of startups such as Klarna, Afterpay, and Affirm that have focused primarily on e- commercial payments. What can make Visa offers more attractive is that they can be used in-store so that there are no gaps in their availability, which could bring partnerships and, in turn, volume to the platform; that’s particularly important considering that Klarna Y others They have been bringing their solutions to the store.
  • Visa also keeps up with competitors like MasterCard Y Amex Established companies have responded to the rise of alternative financing options by diving into POS financing: Mastercard recently bought Vyze and Amex offers its own flexible financing initiatives. Therefore, it is important that Visa also come up with its own solution to keep up. For consumers, access to the Visa solution could make a particular card more attractive, which could encourage portfolio-first status and promote ongoing spending. These benefits could ultimately boost Visa’s attractiveness as a partner for issuers looking for ways to stand out as POS financing takes off.

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