Visa Partnerships Target Merchant Services and Mobile
Feb. 28, 2013
Visa this week signed partnerships with the largest credit-card issuer in the U.S. and the largest smartphone manufacturer in the world. On Tuesday, Visa said it has partnered with JPMorgan Chase to form Chase Merchant Services. The new venture, which the companies said will launch by the end of this year, will create a processing platform for Chase merchant clients leveraging Visa’s VisaNet network. The platform will process transactions initiated with JPMorgan Chase-issued Visa cards at merchants that JPMorgan Chase enrolls in Chase Merchant Services. For its part, the issuer will shift more of its credit and debit cards to Visa, driving more transactions to VisaNet.
“We look forward to expanding our partnership with JPMorgan Chase and further driving the migration to electronic payments by offering superior and unique value to merchants and cardholders,” said William Sheedy, group president, Americas for Visa Inc. “As technology drives the evolution of the payments industry there are more opportunities to deliver value for merchants and cardholders at the point-of-sale.”
A day earlier, Visa announced a partnership with smartphone manufacturer Samsung it said could pave the way for widespread adoption of mobile payments. Under the agreement, Samsung customers will be able to download payment account information securely to their devices using the Visa Mobile Provisioning Service and Visa’s payWave app will come preloaded on Samsung devices enabling NFC-based contactless mobile payments at merchants equipped with Visa payWave terminals.
“Samsung devices enabled with Visa payment functionality will no doubt be a powerful product offering – especially in markets where paying with a mobile device is becoming commonplace,” said Jim McCarthy, global head of product at Visa Inc. “However, the key to making mobile payments broadly available all over the world is to offer financial institutions a secure way to provision millions of smartphones with payment account information—and that is exactly what Visa and Samsung are ready to deliver.”