Visa Launches Suite of Digital Services, Pledges to Work More with Merchants and Developers on Mobile Payments
July 28, 2014
It has been a busy two weeks for Visa in the card-not-present payments space. On the heels of investment announcements in mobile payments and electronic authentication , the San Francisco-based card network last week announced it has revamped its online-payment technology with the introduction of Visa Checkout . But all those were precursors to the introduction Thursday of Visa Digital Solutions, a suite of services that will enable and simplify payments across all Internet-connected devices.
From Visa’s perspective this covers card-present and card-not-present payments in the form of what it’s calling “wave-to-pay” (NFC-based Visa payWave payments), “scan-to-pay” (QR code-based payments) and “click-to-pay” (the newly unveiled Visa Checkout). The company also introduced a tokenization service it said will launch in September to make payments in the digital space more secure.
In addition, Visa pledged to work more with merchants and developers to enable innovative mobile payment technologies.
“Historically we would only allow access to our capabilities through issuers and acquirers and for them it wasn’t particularly easy,” said Visa CEO Charles Scharf during the company’s third-quarter earnings call. “Today we’re simplifying access for our traditional partners but we’re also enabling a much broader set of partners to access these platforms in ways we have not allowed historically so, they can build experiences that use our payment of capabilities. This includes partners such as merchants, technology companies both big and small, mobile operators, device manufacturers, other payment companies, social networks and the broader application developer community. Including these partners means exposing web services so they can connect with us.”
Scharf noted during the call for analysts and investors that Visa’s card-not-present volumes are growing three times faster than card-present, thought they still account for “just a fraction of the opportunity in the space.”