Visa announced on Tuesday the launch of a flexible payments feature in the U.S. and the United Arab Emirates, aiming to capitalize on the rising demand for diverse transaction options. The 'flexible credential' feature, already operational in Hong Kong, Japan, the Philippines, Singapore, Thailand, and Vietnam, allows customers to use a single card for payments from various funding sources, according to the payments processor.
As e-commerce continues to thrive, customers are increasingly valuing convenience and flexibility in their payments, prompting companies to take proactive measures to stay competitive in an industry increasingly influenced by digital disruptors. A Visa study revealed that 51% of card users desire the ability to access multiple accounts and funding sources through a single credential.
"Most people think of their finances on a month-to-month basis. Breaking down the cost of an item helps people with their financial decisions and allows retailers to sell more," said Odysseas Papadimitriou, CEO of personal finance firm WalletHub. For the U.S. rollout, Visa has collaborated with fintech company Affirm, which boasts 1.4 million active cardholders. In the UAE, Visa has partnered with Liv Bank.
Visa plans to extend this feature to Europe in the coming months, according to Mark Nelsen, Visa's global head of consumer products. The partnership with Affirm also underscores the growing collaboration between fintechs and traditional financial institutions. While often seen as competitors, such alliances can enable both parties to explore new revenue opportunities.
"It's a little bit easier for the fintechs to get started on this. But as the ecosystem matures, you'll see some legacy banks start to take advantage of it as well," Nelsen noted. Affirm CEO Max Levchin expressed the company's intention to offer a product that "seamlessly integrates debit and credit, without late or hidden fees."
Source link: https://www.khaleejtimes.com
