A regional partnership focused on the Asia-Pacific (APAC) region has been inked by Visa and Standard Chartered, with a market-by-market delivery strategy.
The duo will rollout the Visa Installment Solution, the payments provider’s buy now, pay later (BNPL) which allows credit lines to be converted into split purchase payments, across the region at participating e-commerce merchants.
A notable trend in global consumer payments in recent years has been the increasing popularity of BNPL. The payment method has risen rapidly in popularity in recent years in Europe, and so its adoption in other regions such as APAC is unsurprising.
“BNPL is an established, yet growing trend in Asia Pacific,” said Serene Gay, Group Country Manager for Singapore, Malaysia and Thailand, Visa. “As a world leader in digital payments, Visa is delivering a seamless installment 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 Installment 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.”
US-based Visa cited research on BNPL adoption in APAC that suggested there is ‘an increasing awareness’ of this payment method in the region, particularly among millennial, Gen X and Gen Z customers.
APAC BNPL customers are most likely to be motivated by ‘affordable monthly payment amounts, no or low interest fees and easy set ups’.
Most popular purchases include personal electronics, household electronics, luxury goods, personal shopping and furniture, with bank and credit card options the most common followed by ‘non-bank’ options such as BNPL brands and retailers.
Visa and Standard Chartered will launch the BNPL platform to Standard Chartered Visa credit cardholders in Malaysia first, followed by Singapore in 2024, with plans to subsequently expand into additional markets.
“We are committed to delivering easy banking solutions with great client experience,” said Manoj Piplani, Global Head, Personal Banking, and Credit Cards & Personal Loans, Standard Chartered.
“With this strategic partnership, Standard Chartered customers in the region can split their payments in installments on various Visa Installment 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 over how they want payments to be made.”