Fintech credi2 and Visa, a world leader in digital payments, have entered a strategic cooperation as part of the Visa Fintech Partner Connect program. Together they are developing a product that can be used flexibly and that will in future facilitate “buy now, pay later” (BNPL) payments with Visa credentials in the Central European markets. Providers who integrate this white-label solution into their card apps gain access to a billion-dollar market that is still largely untapped.
The new white-label offer for card-issuing banks, developed by credi2 in cooperation with Visa, will enable cardholders to make flexible installment payments via Visa credentials in future. This gives consumers the opportunity to opt for a flexible partial payment before and after the online or POS purchase. With the seamlessly integrated BNPL option, banks can benefit from a rapidly growing pre- and post-purchase BNPL market worth billions. According to Juniper Research the BNPL market will amount to $995 Billion in 2026.
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Changing payment methods
“Visa cards are accepted in more than 200 countries and territories worldwide. Because of the large reach, providers should think about their positioning in a changing world of omni-channel payment methods,” says Christian C. Waldheim, Co-CEO at credi2. “Anyone who does not offer the option of flexible installment payments is at risk of losing touch with the payment market.” Young adults of Generations Y and Z in particular are already using convenient BNPL solutions that are integrated into the retailer’s purchasing process. During the payment journey, they can opt for flexible installment payments.
This BNPL solution is an alternative to previous options. Along with a Visa card with a partial payment function, it offers a trustworthy means of payment that enables users to subsequently convert purchase amounts into installment payments (“post purchase”) – with high coverage and acceptance. “BNPL via Visa card offers customers more flexibility, a better overview and helps to prevent their account limit from being blocked by debiting the entire amount,” says Waldheim.
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A cooperation that helps BNPL to increase its reach
“We see a sustained consumer interest in flexible and at the same time secure payment options. With the help of credi2, we can enable our issuing partners to enter the market quickly and easily with essential infrastructure building blocks,” says Jakub Grzechnik, Head of Product at Visa in Central Europe. The white-label solution developed by the two partners can be modularly adapted to the requirements of the respective card-issuing financial institution.
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