Installments: Consumers can buy now and pay later

Offer your customers installment payment plans on an API-based solution or on existing international standards.

Visa has developed installment solutions

Visa has released capabilities on Visa Developer Portal to allow clients to develop and pilot installment experiences to offer to their customers.*

Introduction to installment payments

Installment payments (installments) refer to the option to pay for purchases over time by dividing the purchase amount into smaller equal payments. Consumers will typically use installments to buy medium and large ticket items (e.g. electronics, furniture). But in some markets, they may even use them to make everyday purchases (e.g. groceries, retail). So, what’s the key benefit for consumers with installments? They get to spread their purchases, including transparent fees, into periodic (usually monthly) repayment amounts.
Donut chart showing 1 out of 4 payments.
Donut chart showing 2 out of 4 payments.
Donut chart showing 3 out of 4 payments.
Donut chart showing 4 out of 4 payments.

Common installment payments models

There are two primary models in the global installment payments landscape: During Purchase and Post-Purchase. These models differ by when the consumer is offered installments, who presents the installment payments plan, and who pays for the cost of providing credit.*

Create plan

API for issuers to create installment plans. Issuers to define plan attributes such as:

  • Duration of installment loan
  • Participating merchant and cards
  • Interest and fees

Check eligibility

API for acquirers, technology pltforms and merchant to look up eligible installment plan(s) for an installment transaction. Merchant can display eligible installment plans and costs to a cardholder during purchases.

Example: 6 month installment plan for all Visa Signature cards from Bank A at home appliance stores

Select plan

API for merchant to confirm the cardholder selected installment plan for a given transaction.

Convert plan

API for issuers to convert the original transaction into an installment plan.

Schedule plan

API for issuers to schedule payments of installment transactions The service will look up cardholder status and calculate monthly installment payments due, so that issuers can manage general ledger and post to cardholder statement correctly.

Visa’s installment solution can provide benefits for all parties in the ecosystem


Increase payment options on existing cards in wallet


Help increase sales volume and conversion rates

Financial institution

Help increase cardholder engagement and loyalty with new revenue stream


Help protect against volume erosion; new value added service for merchant offering

Installments is a large and growing opportunity

Globally, installments represented $1.6T in market value in 2020. And it’s growing quickly - up 5% YoY. In contrast, credit card expenditure declined by 4% globally.
Growth in installments in different sectors. See the detailed image description.
Globally, installments represented $1.6T in market value in 2020. This is comprised of 38% credit cards, 27% fintech loans, 20% traceable personal loans, 12% durables lending, and 3% store cards.

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