Standard Chartered Launches BNPL Option for Consumers across APAC
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Banking giant Standard Chartered has secured a regional partnership with VISA to make installment payment options readily available to credit cardholders in the APAC region. This partnership is made possible by the VISA Instalment Solution.
The Visa Instalment Solution will ensure that credit cardholders in banks have more flexibility with the Buy Now, Pay Later (BNPL) options across the Asia Pacific region. The cardholders will also share the purchase repayments for the participating ecommerce and in-store merchants.
This partnership will initially benefit Standard Chartered and Visa credit cardholders in Malaysia before expanding into Singapore in 2024. The two also plan to extend the partnership to more markets.
Visa Instalment Solution
The Visa Instalment Solution will ensure that the existing credit lines are converted into BNPL options during checkouts. The cardholders will have more convenient ways of making payments for their purchases.
With flexibility and convenience, cardholders will also influence a consumer’s decision to shop on the platform, which will increase the number of transactions.
BNPL is a popular and growing trend across the Asia Pacific region. This payment option has become increasingly popular across the digital payments industry, as it appeals to consumers without cash to purchase their ideal products.
A spokesperson from the company noted that banks recognized the Visa Instalment Solution as a value-added service for cardholders as it improved their purchasing decisions and shopping experience.
This partnership will also ensure that Visa credit cardholders have more flexibility in repayments, making it easier to decide how to make online and in-store purchases.
Increased Use of BNPL Systems
BNPL allows cardholders to make equal monthly payments for their purchases. BNPL is a short-term financing option where interest-free repayments enable consumers to make purchase payments over time.
The Asia Pacific region has embraced BNPL systems, with millennials being the highest users. This system is gaining interest because of the friendly monthly payment amounts and the low-interest fees.
Installment options can be used to purchase personal and household electronics, luxury items, furniture, and other items. Banks and credit card providers are taking the lead in the popularity of BNPL payment options. Retailers and BNPL brands also offer these services to create a simple, secure, and convenient way of giving customers control.
