Visa and Neopay, the payment subsidiary of Mashreq Bank, have partnered to develop a new instalment payment solution for the UAE market, according to a press release.
The solution seeks to enable consumers with credit cards to split their retail transactions into convenient monthly retail transactions, which will help them manage their budgets and make larger purchases more affordable.
Visa’s senior vice president and group country manager for the GCC region, Saeeda Jaffar, 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 per cent 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.”
The instalment payment solution is expected to launch in the Emirates soon.
Once deployed, consumers will be able to use the option at participating retailers across various industries.
Group head of retail banking at Mashreq, Fernando Morillo, said: “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.”
Visa’s Instalment solution offers cross-border transaction opportunities with selected corridors, with plans in key markets, such as Saudi Arabia and Qatar.
According to a study by Precision Business Insights, the installment payment solution market size was valued at $2,092.7 million in 2022 and is expected to reach $3,230.7 billion by 2029, at a compound annual growth rate of 6.4 per cent.
