Emily Odindo’s Post

Are cards now becoming digital wallets? That seems to be the next battle in the complex world of #payments and Visa is putting up a fight with their Visa Flexible Credential (VFC). What is it? Announced on May 15th together with other innovations, it is part of Visa’s strategy to re-invent the card and re-position itself in a world with increasing digital wallet dominance. How does it work? -   VFC is reversing the card logic as we knew it so far by consolidating multiple payment methods into one card. -   This marks a transition from one card with one payment method to one card with many funding sources. -   Instead of having to use one credit or debit card you can now have different funding options (debit, credit, BNPL, rewards points) connected to any card and be able to switch between them via the app. Use cases: -   UAE’s Liv digital bank will use VFC for cross-border payments by connecting multiple currency accounts to single card. Essentially Liv wants to transform x-border payments into local payments (by automatically routing each transaction to the relevant currency account). -   US #BNPL provider Affirm will use VFC to enable Affirm card holders get access to BNPL functionality wherever Visa is accepted. -   In Japan, the Olive card from Sumitomo Mitsui Financial Group – which has reached 3mn accounts – has neither a number nor an expiration date on the plastic, but the credit, debit, and prepaid functions share the same card number, which is accessible through the app. My take on implications: -   Cards are now directly competing with #digitalwallets. -   Higher degree of flexibility, personalization and targeted focus for banks and fintechs. -   Expect to see additional funding sources to be added gradually (i.e. crypto). -   Opportunity to connect ecosystems (bring different capabilities under the same roof). -   Can transform the SMB and SME landscape by acting as a bridge between business and consumer accounts (potential to switch with the same credential). Opinions: Panagiotis Kriaris

Physical card vs digital wallet

Are cards now becoming digital wallets? That seems to be the next battle in the complex world of #payments and Visa is putting up a fight with their Visa Flexible Credential (VFC). What is it? Announced on May 15th together with other innovations, it is part of Visa’s strategy to re-invent the card and re-position itself in a world with increasing digital wallet dominance. How does it work? -   VFC is reversing the card logic as we knew it so far by consolidating multiple payment methods into one card. -   This marks a transition from one card with one payment method to one card with many funding sources. -   Instead of having to use one credit or debit card you can now have different funding options (debit, credit, BNPL, rewards points) connected to any card and be able to switch between them via the app. Use cases: -   UAE’s Liv digital bank will use VFC for cross-border payments by connecting multiple currency accounts to single card. Essentially Liv wants to transform x-border payments into local payments (by automatically routing each transaction to the relevant currency account). -   US #BNPL provider Affirm will use VFC to enable Affirm card holders get access to BNPL functionality wherever Visa is accepted. -   In Japan, the Olive card from Sumitomo Mitsui Financial Group – which has reached 3mn accounts – has neither a number nor an expiration date on the plastic, but the credit, debit, and prepaid functions share the same card number, which is accessible through the app. My take on implications: -   Cards are now directly competing with #digitalwallets. -   Higher degree of flexibility, personalization and targeted focus for banks and fintechs. -   Expect to see additional funding sources to be added gradually (i.e. crypto). -   Opportunity to connect ecosystems (bring different capabilities under the same roof). -   Can transform the SMB and SME landscape by acting as a bridge between business and consumer accounts (potential to switch with the same credential). Opinions: Panagiotis Kriaris

Are cards now becoming digital wallets? That seems to be the next battle in the complex world of #payments and Visa is putting up a fight with their Visa Flexible Credential (VFC). What is it? Announced on May 15th together with other innovations, it is part of Visa’s strategy to re-invent the card and re-position itself in a world with increasing digital wallet dominance. How does it work? -   VFC is reversing the card logic as we knew it so far by consolidating multiple payment methods into one card. -   This marks a transition from one card with one payment method to one card with many funding sources. -   Instead of having to use one credit or debit card you can now have different funding options (debit, credit, BNPL, rewards points) connected to any card and be able to switch between them via the app. Use cases: -   UAE’s Liv digital bank will use VFC for cross-border payments by connecting multiple currency accounts to single card. Essentially Liv wants to transform x-border payments into local payments (by automatically routing each transaction to the relevant currency account). -   US #BNPL provider Affirm will use VFC to enable Affirm card holders get access to BNPL functionality wherever Visa is accepted. -   In Japan, the Olive card from Sumitomo Mitsui Financial Group – which has reached 3mn accounts – has neither a number nor an expiration date on the plastic, but the credit, debit, and prepaid functions share the same card number, which is accessible through the app. My take on implications: -   Cards are now directly competing with #digitalwallets. -   Higher degree of flexibility, personalization and targeted focus for banks and fintechs. -   Expect to see additional funding sources to be added gradually (i.e. #crypto). -   Opportunity to connect ecosystems (bring different capabilities under the same roof). -   Can transform the SMB and SME landscape by acting as a bridge between business and consumer accounts (potential to switch with the same credential). Opinions: Panagiotis Kriaris

In the world of FinTech, Visa's new flex credentials is a big deal: consumers can access multiple accounts and funding sources through a single credential. Easy does it. Essentially, Visa has productized what was built for Affirm Debit+. This should have massive implications for credit card rewards. Within the Auth message, merchants get the funding source, PAN and data token...you can see a future where issuers create a blended product, including BNPL. One further indication that cards are going away and digital wallets are the future. (link in first comment) #FinTech #payments

✨Visa de's Global Payments Innovation✨ Visa is at the forefront of transforming the future of payments by combining cutting-edge technology, scalability, and secure financial transactions across its vast global network. Operating in over 200 countries, Visa processes an astounding 296.8 billion transactions annually, enabling seamless money movement and digital commerce worldwide. 🚀Key Highlights: Expansive Reach: Serving over 4.5 billion cardholders and supporting 130 million merchants globally, Visa is a leader in digital payments. UPC Protocol: Visa's Universal Payment Channel (UPC) protocol is designed to handle cross-border transactions with unmatched efficiency. It supports the seamless movement of money between consumers, issuers, and merchants, while integrating advanced blockchain systems for enhanced transparency, security, and speed. New Flows and Value-Added Services: Visa’s network of networks drives P2P, B2B, and G2C payments, offering diverse solutions like Visa Direct, Tap to Pay, and Tokenization. These innovations support businesses, consumers, and governments globally. Technology-Driven Infrastructure: Visa's commitment to blockchain and other decentralized technologies ensures transparent and secure financial services across industries like cross-border payments and supply chain management. Adoption by Major Financial Institutions: Visa's payment infrastructure and innovative solutions have been adopted by leading banks and financial institutions across the world, including HSBC, JPMorganChase, and Citi India, to secure cross-border payments and support global digital transactions. Visa’s purpose is to uplift everyone, everywhere, by delivering the most secure, reliable, and innovative payment experiences, leading the digital finance revolution. A special thanks to Professor daitri tiwary for insightful guidance on understanding the future of digital finance and payment networks. #VisaGlobal #FintechInnovation #UPCProtocol #DigitalPayments #FutureOfFinance #BIMTECH

𝑮𝒂𝒎𝒆 𝒐𝒇 𝒄𝒂𝒓𝒅𝒔 - Will the new player from the east take over the Global Payment kingdoms ? 🃏 Gone are the days when credit cards were merely plastic pieces of convenience; today, they are at the forefront of a global battle for dominance among payment networks. 🃏 Visa has long held the crown 🃏 Visa and Mastercard together control approximately 90% of all payment processing outside of China, indicating a long-standing duopoly in the global payments market 🃏 UnionPay, with its rapid growth and significant presence in Asia, is quickly catching up. 🃏 The introduction of mobile wallets and cryptocurrencies adds another layer to this competitive landscape, challenging traditional card networks to rethink their strategies. As we watch this game of cards unfold, one thing is clear: the future of payments is exciting, and the players are just getting started. ✍🏼 Anupriya Muthukumar - Amplifying innovative tech & people Credits: Jeff Desjardins, Voronoi App, Visual Capitalist #AlltheGoodTech #Cards #payments

I’m not an expert at spotting big new tech trends, but I think something significant happened at the Visa Annual Payments Forum last week. Something which is going to have a huge impact on loyalty in the payments sector. Visa made a number of major announcements. The ones that caught my eye, were around Pass Keys and Data Tokens. Among many other features these will enable multiple ways to pay including debit or credit, BNPL, or points pay all from one devise. Perhaps it won’t be long before when we pay we are offered a game of chance or a quiz to get the purchase FOC, or we can add on a multi buy offer or have points instantly sent to an investment account or charity, all at the POS. Whilst some digital banks are doing a lot of these things already it’s the tipping point when these features become mainstream, which seems like a game changer. It will be fascinating to see how quickly these new features are adopted and how loyalty tactics change to embrace them, and how Digital Banks maintain differentiation. For more info visit investor.visa.com

ECB’s Digital Euro and VISA’s Traveller Solutions The European Central Bank (ECB) promotes a digital euro to complement cash and offer greater payment freedom. Currently in a two-year preparation phase, with a potential launch in 2026, the digital euro aims to provide a cash equivalent for digital payments. Executive board member Piero Cipollone highlights the reliance on US payment giants Visa and Mastercard and argues that a digital euro would offer cash-like convenience for in-store, e-commerce, peer-to-peer, and offline transactions. This would enhance competition, reduce costs, and ensure greater privacy and financial inclusion. Cipollone asserts that a digital euro would unite Europeans in a digital age, making life easier while preserving freedom of choice. The ECB’s push comes alongside publishing a progress report on the initiative. Simultaneously, Visa has introduced a digital card replacement service for travellers. With 74% of US travellers using digital wallets, Visa’s new service allows travellers who lose their wallets to receive a digital card replacement via text or email. The digital emergency card replacement service ensures seamless, stress-free journeys by providing instant, secure access to funds. Kathleen Pierce-Gilmore, Visa’s global head of issuing solutions, notes the service’s ability to deliver superior customer service during travel disruptions. These initiatives highlight the rapid evolution in the #Fintech sector, showcasing innovations that enhance consumer experience, security, and convenience. See: https://bit.ly/3Lp2uoZ #customerservice #digitaleuro #digitalpayments #digitalwallets #financialinclusion #fintech #paymentfreedom #travelsmart #visa

Visa’s Chris Ferron, sat down with Hanna Zaidi, Wealthsimple and Alex Vronces, Fintechs Canada to discuss innovation in Canada’s payment ecosystem at this year’s #CanadaFintechForum. A key takeaway from the discussion: Canada’s payment ecosystem is changing and there are opportunities for transformation through industry collaboration. At Visa, innovation is what we do. We’ve been at the centre of the industry’s biggest payment developments from chip cards to contactless payments to real-time cross-border money movement. We’re helping partners navigate this complex landscape and make sense of these changes. Learn more: https://vi.sa/4eirBpG