New Visa Installments solution will let eligible CIBC clients select installment options for qualifying online purchases during checkout
TORONTO, June 24, 2021 /CNW/ - In response to rising consumer demand for flexible installment plans, CIBC, together with Visa, today announced a new installment payment option for online purchases, anticipated to launch for CIBC cardholders in Canada in early 2022. Visa Installments is a new option to convert qualifying purchases into smaller, equal payments made over a defined period of time using an eligible credit card.
With the Visa Installments solution, eligible Canadian CIBC cardholders will be able to request an installment option at the online checkout stage of their shopping experience. This new offering will be available to most CIBC personal credit card holders, on qualifying purchases at participating merchants. Clients will then be able to pay for the purchase they are making in regular installments, as part of their monthly credit card payments.
This new offering builds on the popularity of the CIBC's post-purchase installment plan, CIBC Pace It™. With Pace It, clients can shop in person or online, and later convert eligible purchases of $100+ into installment plan payments through CIBC online banking or mobile banking. Since its launch in September 2019, there has been strong uptake of Pace It installment plans by a range of CIBC clients, giving them greater control over how they pay for purchases.
"As the popularity of installment plans for online credit card purchases continues to grow globally, we're pleased to be working with Visa to bring this innovation to our CIBC credit card clients here in Canada," said Diane Ferri, Senior Vice President, Card Products at CIBC. "This new option builds on CIBC Pace It, offering clients greater flexibility and more options to manage their cash flow."
"We're excited to help CIBC bring our tailor-made Visa Installments solution to their cardholders, giving them more choice in how they pay for purchases, and more control over their budgets," said Brian Weiner, Vice President and Head of Product and Digital, Visa Canada. "Cardholders will have the option to divide their total purchase amount into smaller, equal payments made over time, within their existing credit card limit, and without needing to fill out a new form or apply for a new loan."
Installments represent a growing portion of the payments market, accounting for over $1.7 trillion CAD of global payment volume.1 This momentum has been reflected in the Canadian market with the adoption of installments increasing 30 per cent in the last year alone, with the Canadian market opportunity expected to be about $50 billion annually.2
Installment plans can offer shoppers greater control over their monthly finances, supporting cash management by enabling a fixed payment schedule to pay for purchases at a reduced interest rate compared to typical credit card rates. Additionally, cardholders are able to use their existing CIBC credit card account instead of needing to submit a credit check, download an app or open a line of credit to participate in a merchant-based program. CIBC cardholders also continue to enjoy existing credit cards benefits for their purchases, such as rewards and insurances, and can pay off an installment plan at any time without penalties, regardless of the length of the installment plan they've chosen.
1 Euromonitor International January 2020 Installment Sizing Report for Visa Inc.
2 Euromonitor Consulting Data Compilation for Visa Inc. ($CDN)
CIBC is a leading North American financial institution with 10 million personal banking, business, public sector and institutional clients. Across Personal and Business Banking, Commercial Banking and Wealth Management, and Capital Markets businesses, CIBC offers a full range of advice, solutions and services through its leading digital banking network and locations across Canada, with offices in the United States and around the world. Ongoing news releases and more information about CIBC can be found at www.cibc.com/en/about-cibc/media-centre.html.
Visa Inc. (NYSE: V) is a world leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. Our relentless focus on innovation is a catalyst for the rapid growth of digital commerce on any device for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit visa.ca, visa.com/blog and @VisaCA.
For more information on Visa Installments, visit: visa.ca/installments.