Visa's BNPL Partnerships: A Strategic Move or Future Risk?

Visa Inc. is strengthening its position in the payments landscape by partnering with Buy Now Pay Later (BNPL) companies like Klarna and Afterpay. These collaborations allow BNPL providers to leverage Visa's payment infrastructure, driving higher transaction volumes for Visa and expanding the reach and credibility of BNPL offerings. Visa's payment volume increased 6.4% and 6.7% in fiscal 2023 and 2024, respectively, and processed transactions grew 9% year over year in Q2 2025.

Visa Inc. continues to solidify its position in the payments landscape by forming strategic partnerships with leading Buy Now Pay Later (BNPL) companies like Klarna and Afterpay. These collaborations enable BNPL providers to utilize Visa's extensive payment infrastructure, thereby increasing transaction volumes for Visa and enhancing the reach and credibility of BNPL offerings.

In a recent development, Visa and DealMe have initiated a pilot program for a cross-border installment payment solution in South Korea and Vietnam, with plans to expand to the United States, Australia, Japan, and Singapore. This partnership allows shoppers with locally issued Visa credit cards to access real-time installment payment services at participating merchants in South Korea [1].

Additionally, Visa has integrated Klarna's payment options into Bolt's CheckoutOS, which will be available in the U.S. later this year. This integration aims to provide merchants with a flexible payment solution that enhances customer engagement and loyalty. The partnership is part of a broader trend where BNPL options are becoming increasingly popular among consumers, particularly those with cash flow constraints [3].

Block Inc., through its Cash App, has also expanded its BNPL offerings by integrating Afterpay's installment payment features. This move has significantly broadened the reach of Block's BNPL services, contributing to a 10% year-over-year gross profit growth in the first quarter of 2025 [4].

Visa's payment volume has shown robust growth, with increases of 6.4% and 6.7% in fiscal 2023 and 2024, respectively. In Q2 2025, Visa processed transactions that grew by 9% year over year [1]. These partnerships and integrations are likely to further boost Visa's transaction volumes and market share in the BNPL and cross-border payments sectors.

References:
[1] https://www.pymnts.com/partnerships/2025/visa-dealme-begin-rollout-cross-border-installment-payment-solution/
[2] https://finance.yahoo.com/news/citigroup-nyse-c-enhances-global-174429005.html
[3] https://www.pymnts.com/bnpl/2025/bolt-adds-klarnas-pay-later-options-to-its-checkout-system/
[4] https://www.theglobeandmail.com/investing/markets/stocks/PYPL/pressreleases/33124844/could-blocks-bnpl-moves-reshape-its-financial-ecosystem/