Case Study
Making payments personalized and flexible
Today’s customers demand payment flexibility, but don’t expect to compromise on transparency and control. They want to benefit from diverse financing options that suit their individual needs. Give customers what they want - such as the ability to pay for ad hoc or unplanned purchases through instalments - and studies show that they will spend 20% to 30% more on average1.
To meet this customer need, Visa and ChargeAfter joined forces through the Visa Fintech Partner Connect program. Together, they are helping Visa’s network of sellers, acquirers and issuing banks offer consumers a broad range of financing and credit options, both for eCommerce and in-store shopping.
This collaboration is also enabling Visa’s global network of issuing banks to participate in ChargeAfter’s network as direct lenders.
1 GlobalData Buy Now Pay Later Report, October 2019
About ChargeAfter
ChargeAfter is a leading POS financing gateway that connects merchants with lenders, offering instant, approved and hyper-personalized consumer financing options to customers from multiple lenders with up to 85% approval rates – live on the merchants website or in-store. ChargeAfter multi-lender gateway provides merchants with every consumer financing product in a single platform. From Deferred 0% interest instalments, Revolving credit, Buy Now Pay Later - Pay in 4, Card instalments, Lease to own and Visa instalments.
ChargeAfter is the first global Fintech to offer Visa instalment point-of-sale payments in the US. Through the partnership, merchants can offer their customers the option of paying through instalments at checkout using their Visa card. These instalment plans offer fixed monthly payments over a defined time period.
Powerful Benefits
The fast-growing instalment payments market offers some compelling benefits to all parties concerned.
For Merchants, there is the potential to increase conversions among shoppers. Typically, up to 85% of financing applications are approved due to ChargeAfter’s robust and growing lender network providing consumer financing across the full credit spectrum. Additionally, giving shoppers the option of paying through easy instalments and additional financing products, increases average sales by 30% and AOV by 45%.
For Lenders, giving shoppers the freedom of personalized, flexible payments is effective in securing access to global merchants, penetrating new market verticals, and acquiring new customers. Compared to other financing options, partnering with ChargeAfter and Visa promises quicker merchant on-boarding and higher approval and acceptance rates.
Customers benefit too. They can enjoy affordable, instant and seamless access to a wider variety of funding options for purchases across their preferred channels and across full credit spectrum.
Just like today where a mobile site is a requirement to conduct business online, so is Point of Sale consumer financing. Simply put, ChargeAfter’s consumer financing is the next wave of credit.
Sam Orfaly, CEO, Abe’s of Maine
Visa and ChargeAfter share a common vision to make payments quick, convenient, safe, and accessible. ChargeAfter’s vision is to help every consumer, worldwide, gain access to financing options that best fit their unique needs, and that are available to the consumer when and where they are ready to purchase - online, in-store, and over the phone. Working with Visa, we're enabling merchants, financial institutions, and lenders to have access to, and offer personalized consumer financing while for every consumer type. long with Visa, we are creating the next wave of credit.
Meidad Sharon, Founder and CEO ChargeAfter
Consumers increasingly demand more choice and flexibility when making a payment, whether for their everyday needs or high-value items. Working with ChargeAfter, we aim to make it easier for sellers and financial institutions to offer a range of tailored, personalized financing options at the point of sale, allowing consumers to manage their payments in a way that works for them.
Shahar Friedman, Head of Visa Innovation Studio Tel-Aviv, Visa
More information about the solutions available through Fintech Partner Connect, visit the Fintech Partner Connect website.
Sources
https://www.prweb.com
https://www.finextra.com/newsarticle/36213/visa-pilots-instalment-payments