Credi2 develops a buy-now-pay-later solution together with Visa

Fintech credi2 and Visa, a leading global provider of digital payments, have entered into a strategic cooperation as part of the Visa Fintech Partner Connect programme. Together, they are developing a flexible product that will enable "buy now, pay later" (BNPL) payments with Visa cards in the Central European markets. Providers who integrate this white label solution into their card apps will gain access to a market worth billions that is still largely untapped.

The new white-label offering for card-issuing banks, developed by credi2 in collaboration with Visa, will enable cardholders to make flexible instalment payments with Visa cards. This gives consumers the option of opting for flexible instalment payments before and after an online or POS purchase. With the seamlessly integrated BNPL option, banks can benefit from a fast-growing, multi-billion dollar BNPL market before and after the purchase.

Means of payment in transition

"Visa cards are accepted in more than 200 countries and territories worldwide. Due to their wide reach, providers should think about their positioning in a changing world of omnichannel payment methods," says Christian C. Waldheim, Co-CEO at credi2. "Those who don't offer the option of flexible instalment payments run the risk of losing touch with the payment market." Young adults from generations Y and Z in particular are already using convenient BNPL solutions that are integrated into the retailer's purchasing process. During the payment process, they can opt for flexible instalment payments.

This BNPL solution is an alternative to the previous options. In addition to a Visa card with instalment function, it offers a trusted means of payment that allows purchase amounts to be converted into instalment payments at a later date ("post purchase") - with high reach and acceptance. "BNPL via Visa card offers customers more flexibility, a better overview and helps to avoid blocking the account limit by debiting the total amount," says Waldheim.

A cooperation that helps BNPL to increase its reach

"We are seeing continued consumer interest in flexible and secure payment options. With the help of credi2, we can enable our issuing partners to enter the market quickly and easily with essential infrastructure modules," says Jakub Grzechnik, Head of Product at Visa in Central Europe. The white label solution developed by the two partners can be modularly customised to the requirements of the respective card-issuing financial institution.