Visa rolls out of BNPL-specific credentials, launches “VIC in a Box” with three partners
Visa has announced that it will roll out the Visa Installment Credential (VIC), a dedicated credential for Buy Now Pay Later (BNPL) products, in Japan. VIC is a new product developed by Visa for card issuers to enable more flexible installment/deferred payment at Visa affiliated stores around the world, and card issuers can use VIC to more easily provide payment options such as interest-free installment payments to their customers. This is the first time that this BNPL dedicated credential will be rolled out in Japan.
In conjunction with the full-scale rollout of VIC, Visa will also launch “VIC in a Box,” a support program for fintech businesses considering providing BNPL payment services using the credential. “VIC in a Box” is a framework that aims to support fintech businesses in launching payment services using VIC by introducing them to partner companies participating in “VIC in a Box,” enabling them to launch products more quickly through collaboration between the fintech businesses and the partner companies.
In recent years, the demand for BNPL has been increasing worldwide among consumers and affiliated stores. In Japan, interest-free installment payments and deferred payment are becoming more and more popular as a more flexible payment method at stores offering relatively high-priced products, especially among younger consumers.
Visa Installment Credential — How it works
Visa Installment Credential — Sample UX flow
Single-use Virtual Card Issuance
- Issuer markets pre-qualified BNPL offer to customer
- Customer confirms desired BNPL loan amount
- Customer provides re-payment details for installment loan
- Customer reviews loan disclosures and opts into the BNPL loan
- Customer receives new BNPL virtual credential Customer makes a purchase with the new credential
“VIC in a Box” program partners
Visa launched “VIC in a Box” to support fintech companies considering providing BNPL services using VIC, and announced that three companies, namely Episode Six, Orient Corporation, and LifeCard, have joined the program as program partners. Through “VIC in a Box”, fintech businesses can receive support for connecting to VisaNet and processing from the three participating program partners, enabling them to start providing BNPL services more smoothly and quickly.
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