The Visa Flexible Credential helps issuers provide more choice via Visa’s worldwide network, bolstered by Zilch’s “customer-focused proposition” and Thredd’s issuer processing platform, per the release.
“Demand for flexible payment experiences continues to grow,” the release said. “Many people no longer think in fixed terms such as debit or credit, instead wanting the ability to choose what works best for a specific purchase in the moment.”
Visa Flexible Credential lets different payment options sit behind one card or digital credential, offering cardholders more choice and control while preserving familiar payment methods, according to the release.
“For Zilch users, the launch supports a smoother, more unified payment experience, with options handled seamlessly in the background and no need to manage multiple cards or credentials,” the release said. “Thredd plays a key role in enabling Visa Flexible Credential, supporting routing and processing behind the scenes and helping issuers and FinTechs bring the capability to market efficiently.”
PYMNTS examined the changing payment preferences of consumers, especially Generation Z, in a report last month.
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“Consumers are no longer choosing how to pay based on habit or loyalty,” the report said. “They are selecting financial tools with a specific outcome in mind at the moment of purchase. That shift is most visible among younger consumers, where paying over time has become less about access to credit and more about aligning payment structure with intent.”
People are increasingly assigning specific roles to each pay later option. For January of this year, 31% of consumers used credit card installment plans, compared to 12% who used buy now, pay later (BNPL).
Young consumers, including members of Gen Z, are the most deliberate in setting specific duties for payment methods. BNPL is closely related to immediacy, while installment plans are more about control.
The data showed that 55% of Gen Z consumers cited speed and easy approval as the chief reason for using BNPL, ahead of credit management or liquidity concerns.
