SWIFT, a global member-owned cooperative and provider of secure financial messaging services, announced on Wednesday it has launched new “Pay Later” API standard, increasing payment choice for consumers. SWIFT reported that as part of an industry collaboration involving banks, merchants and technology providers, it has published a new API standard for the ‘Pay Later’ payment model, which is gaining traction globally. The model notably gives consumers an innovative and flexible payment option when completing online purchases.
“Pay Later gives e-commerce customers the opportunity to pay for goods or services in installments with a simple loan provided by a regulated bank. By selecting Pay Later during the checkout process, customers will be shown loan offers and the schedule for repayment, before accepting an offer. Once a loan is initiated, the funds are immediately credited to the merchant, and the transaction completed.”
Pay Later offers the following:
- The customer gets funding from a trusted and regulated bank.
- The merchant makes a sale.
- The bank gets a loan on its books from a customer it knows.
While sharing more details about the Pay Later API, Stephen Lindsay, Head of Standards at SWIFT stated:
“SWIFT has long been at the forefront of banking standardization and is continuing this work in the API world. Our work on Pay Later is a good example of how standardization plays a vital role in ensuring the industry can take every advantage of technological innovation.”
Anne Carøe Hald, Global Head of Payments Products at Danske Bank went on to add:
“Pay Later is an opportunity for banks to serve their customers better; to offer appropriate finance where and when customers need it. The ability to provide services in this way – seamlessly integrated in customers’ online lives – will be key for banks to thrive in the digital economy.”