Royal Bank of Canada Adds Installments Enabled by Visa

Aiming to meet the evolving needs of consumers and merchants, the Royal Bank of Canada (RBC) has become the latest issuer to add installment plans enabled by Visa.

With Installments Enabled by Visa, which was launched by Visa in Canada last year, eligible RBC personal credit cardholders who are shopping at participating merchants will be able to choose to make payments over a defined period of time, the companies said Monday (Nov. 14) in a press release.

These cardholders can do so by leveraging their existing credit, so they won’t have to submit a new loan application, complete a credit check or download a new app, according to the release.

“Together, we’re excited to offer consumers another payment option that provides greater flexibility, affordability and simplicity when they shop — all seamlessly integrated within their existing RBC credit card product,” RBC Vice President of Retail Cards Leah Napier said in the release.

The Installments offering enables issuers, processors and retailers to meet the growing consumer demand for financing solutions like installment payments and buy now, pay later (BNPL), according to the press release.

“Our collaboration with RBC is about enabling eligible Canadian cardholders and participating merchants to take part in the growing installments trend, delivering a more flexible payment experience within the familiarity of a Visa transaction process,” Brian Weiner, vice president and head of product and digital at Visa Canada, said in the release.

Installments are one of the new options Visa has been rolling out to help banks and other financial institutions make the most of a lucrative opportunity — the BNPL option that is expected to become a $3 trillion business by 2030.

“We are supporting all sides of the ecosystem — and enabling them to offer installments — in a seamless way during the purchasing experience,” Arvind Ronda, global head of installments (BNPL), told PYMNTS in an interview posted in June.