Brian Weiner is the Vice President and Head of Product for Visa Canada and is here to discuss more about Visa Installments and the Canadian visa market. Brian touches on some of the major factors contributing to the acceleration of installments as a payments trend. Additionally, he also describes the offerings available through Visa Installments and how can these offerings contribute to the financial well-being of merchants and consumers.
Brian Weiner is the Vice President and Head of Product for Visa Canada. His organization is responsible for the development and rollout of Visa’s full Canadian product suite, including its traditional credit, debit, and prepaid products, as well as its expanding array of digital products and capabilities.
Since 2006, Brian has been an active member of Visa’s leadership team, responsible for shaping the organization’s strategy through one of the most dynamic periods in the history of the payments business in Canada.
Looking ahead, Brian and his team are focused on re-imagining the future of payments in collaboration with many partners across the payments ecosystem in Canada and around the world. Brian has won multiple awards for his work in evolving electronic payments in Canada, and he was recognized as a global winner of Visa’s Go Beyond program.
Brian has been in the Canadian financial services industry since 1997. He holds an MBA from the Schulich School of Business and a Bachelor of Commerce from Carleton University.
What are the major factors contributing to the acceleration of installments as a payments trend?
Installments are a rapidly growing segment of the payments market, with adoption further fueled by the COVID-19 pandemic. This payments trend currently represents over $1.7 trillion of global payment volume[i], and in Canada, the opportunity is expected to be about $50 billion annually[ii].
In markets like Canada, where installments represent a new way to pay, adoption is growing in the double digits. Canada has seen 30 percent growth in the last year alone[iii]. Globally, installments have grown 2.5 times as fast as traditional credit cards[iv] and it is rising approximately 20 percent year-over-year.
Visa began tracking installments use in 2017 and we were surprised at the level of interest at the time. Fast forward to 2019, and the numbers just became stronger. We have observed that the growth is happening in two key buckets:
- Gen-Z and Millennials are a new class of consumer, one who seeks experience and convenience, flexibility and choice. They have been a catalyst for growth in installments.
- Pandemic-driven spending habits. COVID-19 has driven installments adoption, similar to other digital payments shifts, across new demographics.
- For example, in the US since July 2020, those aged 54+ were the fastest growing segment with a 98% growth in usage.
What are Visa Installments?
Visa is helping to bring greater payment flexibility to Canadians with the launch of Visa Installments – a new option to convert qualifying purchases made on a cardholder’s existing credit card into smaller, equal payments over a defined period of time.
Canada is one of the first to launch Visa Installments globally. What I’m most excited about is that this launch is in collaboration with three of Canada’s leading financial institutions, Scotiabank, CIBC, and Desjardins with Global Payments, and this is just the beginning. Visa Installments plans to continue to expand with partners in Canada and beyond to provide more choices to consumers and businesses.
Can you describe the offerings available through Visa Installments?
Thanks to our collaborations with CIBC, Global Payments, and Desjardins, Visa Installments will be available to eligible Canadian cardholders as early as this summer. This includes expansion to participating Canadian merchants, giving eligible cardholders the option to pay for qualifying purchases in a set of predictable installment payments.
- This month, Scotiabank rolled out SelectPay™ leveraging Visa Installments.
- Eligible Scotiabank Visa credit cardholders can choose to take advantage of the new payment installment plans with Scotia SelectPay™ where they can convert qualifying credit card purchases of $100 or more into fixed monthly installment payments in this after purchase solution.
- Later this year, in collaboration with Global Payments, Visa Installments will be available for participating Canadian merchants and eligible cardholders. Global Payments is enabling its merchant customers to offer Visa Installment options to theireligible consumers. With a single integration, merchants will have the ability to enable installment offers for eligible cardholders, without them having to sign up for a new service. In turn, eligible cardholders can choose at point of purchase whether they wish to pay for the transaction insmaller, equal payments with their existing credit card.
- Desjardins will also be launching Visa Installments to its cardholders later this year, enabling them to opt for more flexible payment options at checkout.
- The anticipated CIBC launch in early 2022will provide the option for eligible Canadian CIBC cardholders to use Visa Installments on qualifying purchases at the online checkout stage of their shopping experience at participating merchants. Then cardholders can pay for the purchase in installments as part of their monthly credit card payments.This new offering builds on CIBC’s existing post-purchase installment solution, CIBC Pace It™.
We’re excited for these launches and for what’s to come. We’ll have more news to share soon as we work with our financial institutions and other partners to roll out even more options in the growing installments space.
Q: What puts Visa in a good position to lead the installments space in Canada?
Canadians are looking for flexible payment options and Visa understands installment solutions and the importance of customer trust. Installments aren’t new – we know they’ve been around for a long time, but they are seeing a modern resurgence in a new economic context, and here at Visa we are in the great position of being present in and observing numerous markets.
Visa is bringing a trustworthy solution to Canada built on the cardholders’ longstanding relationship with their issuer and designed with long-term ecosystem health and the long-term financial health of consumers and merchants in mind. Visa is helping the global payments ecosystem meet the demand for installments in new markets around the world, by providing technology and partnership to players in two key areas:
- Aligning with partners around the world, both fintech’s and financial institutions, to help enable their customers to use installments as a payment option.
- Building installment capabilities that are available to consumers on their existing Visa cards.
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Q: How do these offerings contribute to the financial well-being of merchants and consumers?
Eligible Canadian cardholders will be provided more choice in how they pay for items with a provider they already trust. The solution will provide shoppers with the ability to divide their total purchase amount into smaller, equal payments made over a defined period of time, with transparency as to when and what they will be asked to pay. Consumers will be able to leverage their existing credit accounts with their banks, instead of needing to submit a credit check, download an app or open another line of credit.
Visa Installmentsmay also bring benefits to Canadian merchants. When installments are available as a payment option at checkout, there is a proven increase in the average ticket size of purchases and a rise in average conversion rate for shoppers[v]. Visa’s API-based solution is also simple to integrate for face-to-face or eCommerce merchants. With a single integration, participating merchants can enable installment offers for eligible customers, without customers being required to sign up for a new service.
[i]Euromonitor International 2020 Installment Sizing Report, commissioned by Visa
[ii]Euromonitor Consulting Data Compilation for Visa Inc. $CDN
[iii] Ipsos survey: Visa Credit Installments Research – September 2020
[iv]Transunion Canada Industry Insights Report- Q1 2019
[v]Source: Euromonitor research, Interbank Cards Center of Turkey