EDCR 2.0 - Enhancing the Flexibility of Payments in CEMEA
As commerce in CEMEA changes rapidly, new innovative and flexible solutions are needed to keep up with consumers’ evolving needs. This includes the rise in e-commerce and the ability to make larger payments in instalments or more flexibly.
Visa's Enabling Digital Commerce Roadmap, introduced in 2024, helps issuers and acquirers prepare for the future needs of consumers in CEMEA. It provides a long-term view to ensure the readiness of their infrastructure for cutting-edge payment solutions and experiences.
In this article, we explore Next-Generation Consumer Experience, one of the four themes under EDCR, and we outline various requirements it includes. The Next-Generation Consumer Experience focuses on driving differentiated cardholder experiences through the enablement of benefits and new payment experiences.
Visa Instalment Solutions
A key requirement of the Next-Generation Consumer Experience is the Visa Instalment Solutions (VIS). It encourages issuers and acquirers to enable a set of VIS capabilities in both card-present and card-not-present channels on credit cards. VIS provides cardholders with an option to split payments over a chosen number of billing cycles at checkout, both in-store and online.
Adopting VIS for issuers is crucial. It helps issuers retain credit card purchase volumes that might otherwise be lost to third-party BNPL providers. In addition, VIS helps to protect and enhance issuer revenue streams, by driving incremental transaction counts and payment volumes, diversifying merchant offerings, and generating additional income from instalment fees.
From a cardholder perspective, VIS introduces significant advantages by providing payment flexibility. The service enhances the overall shopping experience by allowing larger purchases to be spread out over up to 48 months (depending on the market), which can potentially increase cart sizes and reduce instances of cart abandonment. Such flexibility not only caters to immediate financial needs but also fosters long-term customer loyalty, as consumers appreciate the ease and convenience of manageable payments1.
VIS offers merchants a suite of tools for payment solutions tailored to their customers' varied needs, enhancing sales conversions and client satisfaction. Offering instalment payments in-store and online enables merchants to more effectively compete in the digital-first market.
"Our goal is to ensure that financial institutions in the CEMEA region are not just keeping pace with the global shift towards digital payments but are at the forefront of this transformation. The introduction of Next Generation Consumer Experiences through products such as Visa Instalments Service and Request to Pay will be a game-changer for both consumers and merchants in the region."
Godfrey Sullivan, Head of Product, Partnerships and Digital Solutions, CEMEA
Request to Pay
Another transformative requirement under the Next-Generation Consumer Experience theme is Request to Pay (R2P). It requires Visa Direct originators to support incoming consumer-to-consumer (C2C) and business-to-consumer (B2C) payment requests and aims to simplify and expedite the process of requesting and receiving payments, providing a more intuitive and user-friendly platform for financial transactions.
For cardholders, R2P offers a straightforward mechanism to manage financial interactions. The intuitive interface simplifies the process of requesting money transfers, thereby enhancing user engagement and expanding payment options. This ease of use is critical in fostering a seamless financial ecosystem where consumers can effortlessly navigate their payment needs.
R2P also offers significant benefits for both financial institutions and merchants2. For issuers, R2P provides a modern, frictionless payment experience, enhancing customer engagement and satisfaction by offering greater control and flexibility over payments. It allows issuers to target new customer segments and provides new payment methods for existing customers, helping banks capture a larger share of the payments market and driving growth and innovation.
For merchants, R2P improves cash flow management by providing real-time visibility of incoming payments, expediting timelines and reducing transaction costs. This results in better financial and operational efficiency. Moreover, R2P enhances transparency and control in payment processes, building trust and reliability between businesses and their customers.
Adapting to the future of commerce in CEMEA
The requirements under the Next-Generation Consumer Experience represent a strategic response to the evolving needs of the CEMEA region. With products and solutions such as Visa Instalments Service and Request to Pay, Visa is equipping financial institutions with the tools they need to meet the demands of modern consumers.
As the digital transformation continues to unfold, the adoption of Digital Roadmap will be instrumental in shaping a more inclusive and efficient payment ecosystem in the region.
To learn more about the strategic themes under EDCR 2.0 please see our dedicated deep dives below:
- Cutting Edge Solutions For Seamless and Secure Transactions
- Building the Infrastructure for Faster Payments
- Keeping Payment Continuity and Efficiency
Hear more from Visa's Godfrey Sullivan and Dan Baxter on the opportunities of EDCR 2.0 here.
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