CIBC to expand installment payment options for online credit card purchases with Visa Canada
With the Installment Visa Visa solution, eligible Canadian CIBC cardholders will be able to request an installment option at the online payment stage of their shopping experience. This new offer will be available to most CIBC personal credit cardholders on eligible purchases at participating merchants. Customers will then be able to pay for the purchase they make in regular installments as part of their monthly credit card payments.
This new offering builds on the popularity of CIBC’s post-purchase payment plan, CIBC Pace It ™. With Pace It, customers can shop in person or online, and later convert qualifying purchases of $ 100 or more into installment payments through CIBC online banking or mobile banking. Since its launch in September 2019, there has been strong adoption of Pace It installment plans by a range of CIBC clients, giving them greater control over how they pay for their purchases.
“As the popularity of installment plans for online credit card purchases continues to grow globally, we are excited to be working with Visa to bring this innovation to our CIBC credit card customers here in Canada,” noted Diane ferri, Senior Vice-President, Card Products at CIBC. “This new option builds on CIBC Pace It, giving clients greater flexibility and more options to manage their cash flow.”
“We are thrilled to help CIBC deliver our tailored Visa installment solution to their cardholders, giving them more choice in how they pay for their purchases and better control over their budgets,” said declared Brian weiner, Vice President and Chief Product and Digital Officer, Visa Canada. “Cardholders will be able to divide the total amount of their purchase into smaller, equal payments made over time, within their existing credit card limit, and without having to fill out a new form or to apply for a new loan. “
Installment payments represent a growing share of the payments market, accounting for more than $ 1.7 trillion CAD of the overall payment volume.1 This momentum has been reflected in the Canadian market with the adoption of installments up 30 percent in the past year alone, with Canadian market opportunities expected to be approximately $ 50 billion annually.2
Installment plans can give buyers greater control over their monthly finances, supporting cash management by allowing a fixed payment schedule to pay for purchases at a reduced interest rate compared to usual credit card rates . Plus, cardholders can use their existing CIBC credit card account instead of having to submit a credit check, download an app, or open a line of credit to participate in a business program. CIBC cardholders also continue to enjoy the benefits of existing credit cards for their purchases, such as rewards and insurance, and can pay off an installment plan at any time without penalty, regardless of the length of the installment plan. ‘they have chosen.
1 January 2020 Euromonitor International Installment Sizing Report for Visa Inc.
2 Compilation of Euromonitor Lookup Data for Visa Inc. (CDN $)
CIBC is a leading financial institution in North America with 10 million personal, corporate, public sector and institutional clients. In Personal and Commercial Banking, Commercial Banking and Wealth Management and Capital Markets, CIBC offers a full range of advice, solutions and services through its main banking network digital and its locations across Canada, with offices in United States and all over the world. Current press releases and more information about CIBC are available at www.cibc.com/en/about-cibc/media-centre.html.
Visa Inc. (NYSE: V) is a global 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 worldwide and is capable of processing over 65,000 transaction messages per second. Our relentless focus on innovation is a catalyst for the rapid growth of digital commerce on any device for anyone, everywhere. As the world shifts 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 payments, visit: visa.ca/payments.
For more information: Davina Ramnarine [email protected] or 416-309-7956; Melissa Vekil [email protected] or 647-244-0425