Move over Afterpay: Visa announce new instalment option for cardholders

By Polly Fleeting · · 4 min read
Fact Checked
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Last week, electronic payment giant Visa announced they will release a new Buy Now Pay Later option for their credit card customers. 

The pilot program is set to drop for both clients and partners in January 2020 and will give cardholders the option to divide the total amount of a purchase and pay in smaller, equal payments over an agreed period of time. 

Existing Visa card users (from participating issuers) will have access to the program and can take full advantage of the new instalment option with participating merchants in store, online and even when travelling overseas. 

RELATED ARTICLE: Love afterpay? Here are some traps you should know about.

“Visa’s instalment capabilities are changing the game by allowing issuers to leverage an existing payment account consumers already have and are familiar with, instead of asking them to submit to a credit check, download an app or open another line of credit,” Senior Vice President, Global Head of Issuer and Consumer Solutions Visa, Sam Shrauger said. 

“We expect instalments to become a foundational method of payment at checkout for both domestic and cross-border commerce payment transactions.” 

According to Euromonitor, in 2017 instalment options came to a total $1.2 trillion in payment volume worldwide and continues to grow by 15% each year, which is double the growth of credit cards. 

For many Aussie shoppers, companies like Afterpay, ZipMoney and PLAY are a more attractive option to credit cards as they offer an interest-free line of credit on purchases.  

What makes Visa’s instalment option different? 

As time goes on more and more Buy Now Pay Later options are becoming available, but Visa’s new instalment scheme works a little differently. 

Visa say they will simplify the current “friction-filled” and “time-consuming” process for using instalment payment options by cutting out the sign-up and application stages, and allow their existing customers to use a platform that they are already familiar with. 

Unlike their other buy now pay later competitors, Visa already have a massive global customer base and their instalment option isn’t an external “add-on” option but instead is available to use directly via a Visa card. 

Additionally, it will be one of the first payment innovations to be available through Visa Next, a new online and app-based platform for customers to access any fresh solutions offered on Visa’s products, as well as manage all their Visa banking and digital wallets in the same place. 

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Last updated 12 December 2024 Important disclosures
  • Citi Rewards - Rewards Points Offer

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    $199 $99 in the first year
    Rewards program
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  • American Express Explorer® Credit Card

    Receive 50,000 Bonus Membership Rewards Points when you apply online, are approved, and spend $4,000 on eligible purchases on your new Card within the first 3 months. T&Cs apply. New Card Members only.*

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  • NAB Low Rate Card - Balance Transfer Offer

    Spend with confidence with a low variable purchase rate and 0% p.a. interest on balance transfers for the first 24 months. Unpaid balance transfer reverts to variable cash advance rate. 3% balance transfer fee applies. There’s also up to 55 interest free days on purchases to help you manage your budget when you pay your account in full by the due date. Minimum credit limit $1,000. Low annual fee. T&Cs, fees, charges and eligibility criteria apply.

    Purchase rate
    13.49% p.a.
    Balance transfer rate
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  • Apply By 14 Jan 2025
    American Express Qantas Ultimate Card

    Receive 50,000 bonus Qantas Points when you apply online by 14 January 2025, are approved, and spend $3,000 on eligible purchases on your new Qantas American Express Ultimate Card within the first 3 months of your approval date. T&Cs apply. Available for new American Express Card Members only.

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  • Citi Rewards - Balance Transfer and Purchases offer

    Enjoy 0% p.a. for 15 months on purchases and balance transfers. Balance transfer reverts to cash advance rate. Earn up to 1 Citi reward Point per $1 on eligible transactions. Apply for a credit limit from $2,000 up to $100,000. Balance transfer fee applies. This product is provided by National Australia Bank Limited, using certain trademarks temporarily under licence from Citigroup Inc.

    Purchase rate
    0% p.a. for 15 months then 22.49% p.a.
    Balance transfer rate
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  • Kogan Money Black Card

    Get 0% p.a. on purchases and balance transfers for 9 months with a 1% balance transfer fee. Reverts to cash advance rate. $0 annual fee to pay. Earn 2 rewards points per dollar on your eligible purchases at Kogan.com & 1 rewards point per dollar on your everyday purchases, almost anywhere (T&Cs apply). FREE Kogan First membership valued at $129/year. Add up to 4 additional cardholders at no cost.

    Purchase rate
    0% p.a. for 9 months then 21.99% p.a.
    Balance transfer rate
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    $0
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Interested in what buy now pay later options are out there? Head to our fintech hub for all the latest articles on what’s on offer or head to our credit card section to compare visa credit cards side by side.

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