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Online payments


Last updated: 03-Jul-2023

Instalments allow consumers to pay for a purchase in parts. An instalment typically covers one purchase/order and multiple payments over time.

Instalments differ from a recurring payment because in recurring payments it is not a single purchase, but an ongoing service like bills or subscriptions. In an instalment transaction, a single transaction is sent to the issuer, which in turn splits the total amount into several monthly payments.

Instalment Types

There are two instalment types:

  • issuer-funded (credit instalments)
  • merchant-funded (regular instalments).

Issuer-funded (credit instalments)

  • The bank issuing the card to the consumer offers the instalments to the consumer
  • The bank charges the consumer's account in the agreed number of instalments and charges an interest
  • The merchant receives the total purchase amount at once
  • The issuer takes the risk


  • The merchant and consumer agree on the number of instalments, free of interest fees
  • The bank charges the consumer's account according to the instalment plan between the consumer and merchant
  • Merchants receive payments as the bank charges the consumer's account
  • The merchant takes the risk

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