Visa and NEOPAY, the payment subsidiary of Mashreq, have joined forces to introduce a new instalment payment solution in the UAE.
Visa’s Instalment Solution (VIS) is expected to launch at participating retailers in the UAE soon. It will enable consumers with credit cards to split their purchases into monthly instalments so they can manage budgets more effectively and make larger purchases more affordable, the firms said in a statement.
The tool will be accessible for both in-store and online shopping using the Visa card with no additional credit assessment required. Furthermore, Visa’s Instalment Solution opens up cross-border transaction opportunities with selected corridors, with future plans in place in key markets such as the Kingdom of Saudi Arabia and Qatar.
The deal comes at a time when consumers are increasingly seeking out ’Buy Now, Pay Later’ payment options that align with their financial needs and preferences. A recent survey by Euromonitor in the UAE highlighted that 48% of consumers find instalments make high prices more manageable and less intimidating, while 37% believe these instalment offers help in handling unexpected expenses.
In addition, 44% of customers perceive instalments as more flexible than other payment options, while an equal percentage admitted to spending more than planned on an instalment purchase.
Dr. Saeeda Jaffar, Visa’s Senior Vice President and Group Country Manager for GCC said: “The demand for instalment payment solutions has been rapidly growing in the UAE, as supported by the research conducted in Euromonitor, revealing that 20% of consumer credit card purchase volume is now converted to instalments. We believe that this innovative offering will address the evolving needs of consumers while at the same time driving digital transformation in the UAE market”.
Fernando Morillo – Group Head of Retail Banking at Mashreq, added, “This partnership enables us to combine our expertise in financial solutions with Visa’s global network and technology capabilities. Working together, we aim to provide an exceptional instalment payment experience that empowers consumers to make purchases with confidence and convenience.”
