Installment payments are increasingly being embedded directly into traditional card infrastructure as payment providers look to simplify checkout financing without forcing consumers into separate BNPL ecosystems. The expanded partnership between emerchantpay and Visa reflects how flexible financing is becoming a core conversion tool for merchants rather than an optional add-on.
Global payment service provider emerchantpay has expanded its collaboration with Visa to integrate Visa Instalments Solutions (VIS) directly into its platform. This integration allows UK merchants to offer flexible instalment options at checkout, enabling eligible Visa cardholders to split purchases into smaller, fixed payments using their existing credit lines. Built to operate natively within the payment flow, the solution performs real-time eligibility checks. It presents transparent terms without redirecting the user or introducing the onboarding friction typically associated with standalone alternative finance products.
The rollout addresses a significant behavioural shift in the United Kingdom, where demand for flexible payment structures is accelerating. Data from UK Finance indicates that 25% of UK adults utilised instalment or deferred payment methods in 2024, a notable increase from 14% the prior year. Research from The Payments Association shows that omitting these flexible choices is a leading driver of cart abandonment, affecting 40% of businesses.
Conversely, 37% of merchants report increased sales volumes when instalment options are available, highlighting the commercial necessity of addressing the £28 billion UK instalment market. By leveraging existing card infrastructure, the partnership introduces scalability to embedded finance workflows without adding deployment complexity for merchants.
Jon Horddal, Chief Product Officer at emerchantpay, stated that introducing these capabilities is critical to meeting consumer demand for seamless payment experiences, boosting customer retention, and driving conversions. Mark Wilcocks, VP of Product and Solutions for the UK and Ireland at Visa, added that merchants are rightly prioritising simple-to-deploy solutions that convert consumer demand into completed sales. This integration marks the latest step in emerchantpay’s broader strategy to expand its capabilities as a payment service provider and acquirer across multiple industries.
What this means for the industry
- Card networks are evolving beyond payment rails into embedded financing infrastructure.
- Merchants are prioritising frictionless instalment options that work inside existing checkout flows without redirects or separate applications.
- Visa Instalments signals a shift toward bank-backed flexible payments that leverage existing credit lines instead of standalone BNPL lending models.
- Rising cart abandonment rates are pushing merchants to integrate more flexible payment methods directly into e-commerce experiences.
- Payment providers are increasingly competing on conversion optimisation and customer retention rather than pure transaction processing.
- Embedded finance is becoming more scalable as instalment services integrate natively into acquiring and payment gateway platforms.
- Traditional card issuers are positioning themselves to reclaim market share from pure-play BNPL providers by embedding instalment functionality directly into Visa-linked payment experiences.
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