Under this agreement, Karta will become the first non-bank private label issuer in the US to process transactions on the VisaNet network. The collaboration between Karta and Visa aims to introduce novel solutions to both merchants and consumers through the VisaNet platform.
Karta has developed a mobile-first solution that enables shoppers to quickly purchase Gift Cards from participating retailers, both digitally and physically. This solution offers businesses that accept Visa an additional revenue channel. Karta's platform is API-based, core-independent, and designed to be scalable.
The integration with Visa's network is expected to enhance the consumer gift card experience by providing security, instant usability, and valuable shopping preference data for merchants. According to a February 2023 Forrester Research report, retailers can significantly benefit from incorporating gift cards into their digital strategies, as they can improve cash flow, drive customer loyalty, and encourage new and repeat purchases. The report also highlights that gift card holders tend to spend an additional 38% beyond the card's face value.
Karta's co-founder emphasised the potential of the partnership with Visa to improve the gift card industry by offering a faster, more convenient, and cost-effective solution for consumers and businesses. Karta officials also expressed gratitude towards Visa for their collaboration, highlighting the importance of incumbents and disruptors working together to drive innovation.
In March 2024, Australia-based fintech DataMesh Group announced a partnership with Visa to improve card-acceptance payment processing experiences. The collaboration leveraged DataMesh's Unify platform, which offers customisable payment solutions. Unify enabled businesses in various sectors, including retail, convenience, fuel, hospitality, and transportation, to customise the payment process and experience according to their specific needs, thereby improving efficiency and customer satisfaction.
In May 2024, Visa announced its partnership with J.P. Morgan Payments in order to provide faster money movement for customers in the US through Visa Direct. Following this announcement, both financial institutions focused on optimising merchants' experiences, providing cardholders with more secure and efficient solutions, as well as driving improvement for J.P. Morgan Payments’ clients. This process took pace with the introduction of faster domestic transactions in the US region, through the use of the Visa Direct network.
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