Canadian Imperial Bank of Commerce (CM) and Visa Inc (V) have announced a new installment payment option for online purchases in response to growing consumer demand for access to flexible installment payment plans.
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The Visa Installment option will convert qualifying purchases into a series of smaller, equal installments, payable over a determined period with an eligible credit card. It is expected to launch in early 2022 for CIBC cardholders in Canada.
The Visa Installment payment solution will allow eligible CIBC customers to choose an installment payment option for their qualifying online purchases during checkout.
This new offer focuses on the popularity of the CIBC’s post-purchase installment plan, CIBC Pace It™. Thanks to Pace It, clients can convert eligible purchases of more than C$100 into installment plan payments when they shop online or in person.
Diane Ferri, Senior Vice President, Card Products at CIBC said, “As the popularity of installment plans for online credit card purchases continues to grow globally, we’re pleased to be working with Visa to bring this innovation to our CIBC credit card clients here in Canada. This new option builds on CIBC Pace It, offering clients greater flexibility and more options to manage their cash flow.” (See Canadian Imperial Bank of Commerce stock chart on TipRanks)
Last week, National Bank analyst Gabriel Dechaine kept a Buy rating on CM and lifted its price target to C$159.00 (from C$156.00). This implies 8.9% upside potential.
The rest of the Street is bullish on CM with a Strong Buy consensus rating based on 8 Buys and 1 Hold. The average Canadian Imperial Bank of Commerce analyst price target of C$154.66 implies 6% upside potential to current levels. Shares of CM have gained almost 60% over the past year.
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