In the past five years, significant changes have occurred in the landscape of payment methods, marking a more rapid evolution than the previous five decades. Consumers have adapted to novel payment experiences, ranging from the integration of digital commerce into various platforms to the widespread adoption of contactless payments.
Highlighted among the innovations is the Visa Flexible Credential, designed to accommodate the growing preference among consumers for accessing multiple accounts through a single credential. This feature enables a single card product to switch between different payment methods, helping users to customise their payment experience, whether using debit, credit, ‘pay-in-four’ with BNPL, or redeeming rewards points. The Visa Flexible Credential has already been launched in Asia and is set to debut in the US in collaboration with Affirm later in 2024.
Additionally, Visa is expanding the capabilities of tap-to-pay technology, leveraging the ubiquity of NFC-enabled mobile devices. This includes enabling various functionalities such as tap-to-confirm for online purchases, tap-to-add-card for better security when adding cards to digital wallets, and tap-to-P2P for convenient person-to-person money transfers.
Recognising the complexity of digital identity verification and the surge in online payment fraud, Visa introduced the Payment Passkey Service, which utilises biometric authentication such as facial recognition or fingerprint scanning to authenticate users and authorise online transactions swiftly and securely. This technology aims to replace traditional passwords or one-time codes, streamlining the checkout process while supporting security measures.
Furthermore, Visa is integrating the Payment Passkey Service into its Click to Pay platform to boost the checkout experience across various markets. This integration aims to reduce manual entry of card details and passwords, promoting a seamless and secure payment process.
In response to the increasing demand for alternative payment methods, Visa is digitising and optimising A2A payments through its Pay by Bank initiative, providing users with more flexibility in choosing their preferred payment methods.
Moreover, Visa is leveraging its expertise in fraud detection to enhance security for A2A payments on RTP networks, employing AI algorithms to identify and prevent fraudulent transactions in real-time.
Lastly, Visa is introducing Data Tokens, a new approach to data privacy and personalised shopping experiences. Through this initiative, consumers can consent to sharing their payment data with merchants to receive personalised offers, while retaining control over their data and the ability to revoke access at any time through their banking app.
Visa's global footprint extends beyond established markets, with a focus on expanding its presence in emerging economies where demand for digital payment solutions is on the rise. Recognising the diverse needs and preferences of consumers across different regions, Visa tailors its products and services to cater to local market dynamics.
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