Published: Jul 7, 2024
by Michael Guta
In Small Business News
Visa has announced a new collaboration with Amazon, offering Canadian consumers more choices at checkout. Eligible RBC and Scotiabank credit cardholders shopping on Amazon.ca or the Amazon app can now select Installments enabled by Visa for qualifying purchases. This option allows consumers to convert purchases into smaller, fixed payments over a defined period, providing greater financial flexibility.
“We are excited to offer our installments solution on Amazon through two of Canada’s leading issuers, granting more consumers access to diversified payment methods and greater financial control with one of the world’s largest online merchants,” said Dan Sanford, Head of Product for North America at Visa. “Recognizing the growing demand for flexible payment options, we are committed to enhancing the end-to-end payment experience for Canadians to address their evolving needs.”
Installments are becoming a preferred payment method among Canadians. Visa research indicates that 58% of Canadians are interested in using installments, and it is projected that by 2026, this method will account for nearly one-quarter of all global e-commerce transactions.
“At Amazon, we are always looking to innovate and improve the shopping and paying experience for our customers,” said Tyler Aldrich, Director, Amazon Payment Products. “Together with Visa, we’re pleased to offer customers greater choice, enabling them to pay for their online purchases in ways that are convenient for them.”
Benefits of Installment Plans for Small Businesses
The introduction of installment plans offers significant advantages for small businesses. By allowing customers to spread payments over time, small businesses can attract a wider range of customers, including those who might not be able to afford a large upfront payment. This can lead to increased sales and higher average order values, as customers feel more comfortable making larger purchases when they can pay in installments.
Installment plans can also improve cash flow for small businesses. With more customers opting for flexible payment options, businesses can expect more consistent and predictable revenue streams. This financial stability can be crucial for small businesses managing expenses and planning for growth.
Offering installment plans can enhance customer satisfaction and loyalty. Customers appreciate having flexible payment options, which can lead to a better shopping experience and increased customer retention. Happy customers are more likely to return and recommend the business to others, helping to build a loyal customer base.
Installments enabled by Visa provides issuers, processors, and merchants with a better payment option to meet customers where they are. This feature is especially beneficial in the current economic climate, where many consumers seek ways to manage their finances more effectively. By offering installment plans, small businesses can tap into this growing market and meet the evolving needs of their customers.
Visa and Amazon are working to bring this payment option to more consumers worldwide. As installment payments become more popular globally, small businesses that adopt these options can stay competitive in the international market. This can open up new opportunities for growth and expansion, as businesses can attract customers from different regions who prefer flexible payment methods.
Image: Envato
Michael Guta is the Assistant Editor at Small Business Trends and has been with the team for 9 years. He currently manages its East African editorial team. Michael brings with him many years of content experience in the digital ecosystem covering a wide range of industries. He holds a B.S. in Information Communication Technology, with an emphasis in Technology Management.
