Method and system for facilitating installment payment with reward points

A payment server in a payment network, comprising:

• a memory comprising stored instructions;
• and
• a processor configured to execute the stored instructions to perform a method comprising:
• receiving a request for an installment payment for a purchase amount, the installment payment to be paid at least partially from reward points available with a payment card of a cardholder,
• determining a required number of reward points for a payment of the purchase amount in response to the request for the installment payment,
• accessing a payment term plan for the installment payment, the payment term plan determined based at least on the required number of reward points, the payment term plan comprising a set of reward points needed to be used for payment corresponding to each installment of the installment payment,
• facilitating sending a notification for an approval of the payment term plan for the installment payment to the cardholder, and
• upon receiving the approval of the cardholder, setting the installment payment as per the payment term plan.

A payment server in a payment network, comprising:

• an installment payment module configured to receive a request for an installment payment for a purchase amount, the installment payment to be paid at least partially from reward points available with a payment card of a cardholder;
• a pay by reward module configured to determine a required number of reward points for a payment of the purchase amount in response to the request for the installment payment;
• and
• a communication interface configured to, upon instructions received from the pay by reward module:
• send the required number of reward points and the request for the installment payment to an issuer server associated with the cardholder,
• receive one or more payment term plans for the installment payment from the issuer server, the one or more payment term plans determined based at least on the required number of reward points by the issuer server, each of the one or more payment term plans comprising a set of reward points needed to be used for payment corresponding to each installment of the installment payment,
• send a request to the issuer server to for an approval of a payment term plan from among the one or more payment term plans for the installment payment from the cardholder, and
• receive the approval of the cardholder for the payment term plan via the issuer server,
• wherein the pay by reward module is further configured to set the installment payment as per the payment term plan.