PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

BNPL: The Times They Are a-Changin’ for Credit Cards

By Brian Riley
June 29, 2021
in Analysts Coverage, Credit, Emerging Payments, Fintech, Lending
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
BNPL: The Times They Are a-Changin' for Credit Cards

BNPL: The Times They Are a-Changin' for Credit Cards

One of the highlights of our recent Buy Now Pay Later research report was that the market is in a state of flux. Yes, fintechs gained scale, but they are one-trick ponies and need to broaden their offering beyond the single $100 purchase.  Yes, they do need to enhance their credit policies with more rigorous lifecycle offerings.  And no, fintechs are not the sole participants in lending and will meet traditional players head-on.

Up on King Street, in Toronto’s financial district, where Visa’s Canada office is just about across the street from Scotiabank, comes an announcement of Visa Installments. Around the corner is the world headquarters for CIBC, another Canadian pillar bank. Both Scotiabank and CIBC now offer Visa Installments according to separate press releases.

Visa Installments is an elegant solution. It solves the weak lending model seen in BNPL fintechs by keeping the customer within an established credit line.  As this official Visa video shows, when certain cardholders transact, they will be offered the opportunity to set their card payment on a specific installment lending schedule. 

The transaction is subject to Visa security standards, which protect against fraud, and credit policy standards are within the issuing bank’s credit policies.  The merchant may see fewer transactions, but what passes through the authorization system is clean, authentic, and irrefutable.

Mastercard has its version, and it is likely to expect similar options throughout the world.  With Mastercard in the foreground, TSYS operates the infrastructure.  Here is the product slick for Mastercard Ireland.

The next thing to watch is how fintechs will move.  Lending competition is good and welcomed in most markets.  The winning model will follow lifecycle lending.  Don’t settle for financing one transaction; bring in the consumer and watch how they pay and transact. Then, think long-term with credit cards, personal loans, student loans, mortgages, and auto loans.  As their life blossoms, be there with options for their family, partners, or anything in between.  That’s the secret sauce for banks like JPMC.

Overview provided by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: BNPLBuy Now Pay LaterCredit CardsLoansMastercardVisa

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    embedded lending

    Embedded Lending as a Growth Strategy for ISVs—How to Maximize Revenue Potential

    June 18, 2025
    merchant ai

    Merchants Find More Use Cases for AI Amid Risks

    June 17, 2025
    prepaid payroll

    Taking the Check Out of Paycheck: The Role of Prepaid in Payroll

    June 16, 2025
    Banking-as-a-service BaaS

    Remodeling Main Street: How Community Banks Can Leverage the Banking-as-a-Service Paradigm

    June 12, 2025
    How Employee Performance Enhances the Customer Experience

    Three Strategies to Maximize Loyalty in the AI-Driven World 

    June 11, 2025
    PFM tools

    How FIs Are Cutting Through Subscription Clutter with PFM Tools

    June 10, 2025
    child identity theft

    Stranger Danger: Protecting Your Children from Identity Theft

    June 9, 2025
    agentic commerce

    The Agentic Advent: How the Next Iteration of AI is Shaping Commerce

    June 6, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result