Visa has introduced a series of products and services to reshape the landscape of payment solutions for businesses, merchants, consumers, and financial institutions.
“The industry is at a pivotal point - new technologies like Gen AI are rapidly shifting how we shop and manage our finances. We’re announcing the next generation of truly digital-native payment card experiences. Today we unveiled new card features and digital innovations that will bring consumers into a more customized, convenient and secure future,” said Jack Forestell, Chief Product and Strategy Officer, Visa.
These solutions follow Visa's announcement of a substantial investment of $100 million in companies working on generative AI technologies and applications, focusing on shaping the future of commerce and payments.
Visa Flexible Credential
The Visa Flexible Credential will enable users to switch between different payment methods, such as debit, credit, Buy Now Pay Later (pay-in-four), or rewards points. Already live in Asia, this feature will be available in the U.S. in partnership with Affirm by this summer.
Tap to everything
With six billion NFC-capable mobile devices in use globally, Visa's tap to pay has reached a 65% adoption rate by the end of 2023, doubling since 2019. This year, Visa plans to expand its tap functionalities to improve user experiences. The new features include transforming any device into a point-of-sale terminal, streamlining online shopping authentication, enhancing security when adding cards to wallets or apps, and facilitating easy money transfers between friends and family.
Visa Payment Passkey Service
As online fraud rates soar, Visa is introducing the Visa Payment Passkey Service, based on Fast Identity Online (FIDO) standards. This service uses biometrics (face or fingerprint) to verify identities and authorize online payments, replacing passwords and one-time codes for safer and more efficient transactions.
The first application of passkeys will be in the Click to Pay service, enhancing checkout security and simplicity. Visa is partnering with issuers to integrate this service into new Visa cards, reducing the need for manual entry of card details and passwords.
Pay by Bank
Addressing the limitations of non-card payments like ACH transfers, Visa’s Pay by Bank service aims to digitize and streamline account-to-account (A2A) payments. This service offers consumers more payment choices, including A2A transfers, loan applications, and credit card payments. Visa's acquisition of Tink has already facilitated this innovation across Europe, and now it is being introduced in the U.S.
Data tokens
Visa has been enhancing payment security through tokenization, with 29% of all Visa transactions now tokenized. The new data token service will allow consumers to control their data privacy while improving shopping experiences. Participating financial institutions will enable consumers to share their data with merchants for personalized offers, while AI-generated insights will improve real-time recommendations. Consumers can track and revoke data-sharing permissions directly from their banking apps.
“There is a global desire to find commonality, interoperability and simplicity for online payments. Our passkeys, designed specifically for payments, represent a massive paradigm shift in our industry because it confirms identity without interrupting the checkout experience. Visa Payment Passkey Service increases security while reducing friction when you pay online, across any device or website, globally,” said Forestell.
At the beginning of the year, ServiceNow unveiled a five-year strategic alliance with Visa aimed at revolutionizing payment services.
