Canadian Imperial Bank of Commerce (CM) and Visa Inc (V) announced a new installment payment option for online purchases in response to growing consumer demand for flexible installment payment plans.
The Visa installment option will convert qualifying purchases into a series of smaller, equal installments payable over a period of time with a qualifying 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 eligible online purchases at checkout.
This new offering highlights the popularity of CIBC’s post-purchase payment plan, CIBC Pace It ™. With Pace It, customers can convert qualifying purchases over C $ 100 into installment payments when shopping 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 are excited to be working with Visa to bring this innovation to our CIBC credit card customers here. in Canada. This new option builds on CIBC Pace It, giving clients greater flexibility and options to manage their cash flow. (See the Canadian Imperial Bank of Commerce stock chart on TipRanks)
Last week, National Bank analyst Gabriel Dechaine maintained a buy rating on CM and raised his price target to CA $ 159.00 (from CA $ 156.00). This implies an upside potential of 8.9%.
The rest of the street is bullish on CM with a strong buy consensus rating based on 8 buy and 1 hold. The Canadian Imperial Bank of Commerce analysts’ average target price of CAD $ 154.66 implies upside potential of 6% from current levels. CM shares have gained nearly 60% over the past year.
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