Visa blurs the boundaries between debit cards and credit cards with new “Flexible Vouchers” payment source

Visa card
Visa aims to bridge the gap between in-person and digital payments by delivering a new set of consumer card enhancements to card issuers in markets around the world.

Andrew Haller/Bloomberg

Visa today announced new digital features for its credit and debit cards, including the ability for users to tap their card on their device to instantly configure a new card in their digital wallet; pay with a credit or debit card from a single account and update Extensive use of facial recognition for one-click checkout.

Visa has been working on a product update for years, with it more than a decade in the making. Simplify e-commerce checkout among Credit card fraud continues to rise trend. The changes also represent a broad modernization that will put within reach certain digital payment shortcuts and financing options pioneered by fintech companies. Help Visa drive new revenue streams.

Visa Flexible Credentials is one of several new product features that enable banks to issue a card that can switch between payment methods. This gives consumers the option to pay by credit or debit card, pay in four equal installments, be assigned to a virtual card with customizable controls or pay with points.

For example, consumers can use the bank's online platform to set preferences so purchases under $100 can be paid with a debit, purchases over $100 can be paid with a credit, and specific purchases can be earmarked for an installment loan from the bank or using Bank rewards points purchases.

“It's a new way of looking at the card, so consumers don't have to sort through multiple different 16-digit accounts when deciding how to pay. They just have an account with their bank and choose how to pay in a menu Available for purchase in advance or on-site,” Nielsen said, noting that the flexible voucher can be used online, in-app or in-store via a contactless device.

The process will be built on existing merchant authorization technology, Nelson said, noting that Visa will work with banks to develop individual use cases, powered by a preference engine that Visa will provide.

“The merchant will send Visa a regular signal with transaction details, Visa will determine how to fund the purchase based on the rules set by the consumer through their bank, and when authorization goes through, the transaction will be defined as a credit card, debit card, or virtual card. Wait,” Nelson said.

Nielsen said North American banks currently have limited access to the feature, and buy now/pay later provider Affirm will pilot it later this year.Max Levchin told analysts earlier this month Affirm Card is testing a financing method that’s neither a credit card nor a debit card Enables users to decide which purchases are for immediate payment and which are for short-term or long-term financing.

Visa began piloting this flexible voucher with certain banks in Asia last year, and it is now widely used in Asia. The feature will be rolled out to banks in Europe, Latin America and the Middle East next year.

Visa also announced a new Tap to Everything feature that builds on its existing Click to make a call Technology that turns any device into a POS device to accept payments. Tap to Everything enables consumers to tap their card on their device, instantly provide the card to a digital wallet, authenticate themselves when shopping online by tapping their card on their device, and connect with friends and family by tapping the card or Transfer funds. Tap to Everything is being rolled out globally in partnership with select banks, Nielsen said.

Another new feature announced by the card network is the Visa Payment Code service, based on Fast IDentity Online (FIDO) standard, extending the device-based one-click checkout experience to all types of online payments using any device.

“We're working to make one-click checkout like Apple Pay work on any browser or device, creating a more streamlined and secure way to checkout than manual or other card data entry methods,” Nielsen said. Passkey also works on devices that don't support biometrics, in which case it will be a password.

“Users control access to their own devices, and even if criminals intercept their passwords, these types of lost and stolen cases are difficult for fraudsters to scale,” he said.

Beginning this summer, Visa will integrate the Visa Passkey service with its existing click-to-pay checkout through issuers in North America. Visa said the service is currently being piloted in Europe and will be rolled out to Latin America, Central Europe and the Middle East next year.

Visa is also expanding its bank payment support in North America, building on its account-to-account payments service in Europe Tink, acquired by data aggregator Visa in 2021. The service will simplify the bill payment process for U.S. Visa card users, who can, for example, scroll to their bank on a utility bill website and click pay without having to enter bank routing and account numbers to pay their bill. Visa is also offering banks a new security layer called Visa Protect for A2A payments, now available in certain global markets.

This summer, Visa will also begin piloting new “data token” technology based on its existing payment token architecture, which can protect payment card details from being disclosed during the authorization process.

Data tokens contain consumers’ shopping preferences, allowing consumers to decide which merchants can use their shopping data and preferences through a consumer-controlled dashboard.

“When consumers agree to share shopping data with merchants to help them find better deals and refine their choices, participating banks can use data tokens to increase transparency for banks by allowing consumers to decide which merchants to share this data with now and instantly. and control over the data they share online,” Nielsen said. Visa will pilot data tokens globally starting this summer.

Some of the new services will be rolled into Visa's existing product pricing, Nelson said, but Visa has not yet specified how much each new product or enhancement will cost.

“We haven't discussed the economic issues yet; they may vary from market to market,” he said.

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