The news: Visa is piloting a new service that lets users transfer money to people who don’t use the same peer-to-peer (P2P) payment service, per a press release.
How it works: Visa+ users won’t need a Visa card. Instead, they’ll set up a personalized payment address linked to either their Venmo or PayPal account that will let them send and receive payments between both apps.
Future Visa+ partners include Western Union, DailyPay, i2c, and Tabapay. Visa will also expand the offering to more use cases—like gig, creator, and marketplace payouts—and to more digital wallets, neobanks, and payment apps.
Will it succeed? Visa+ solves many of the participating wallets’ pain points.
P2P payments thrive on the network effect. Wallets attract users because both parties need to be on the same network, but Visa+ eliminates that—bringing major implications to the P2P space. It may increase app loyalty as it dissolves the need for multiple wallets, but also may make it harder for wallets to attain new users.
Just one catch: Visa+ will need to widen its scope. Before the wider rollout of Visa+ in mid-2024, the company should work to bring in new partners.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
One Liberty Plaza9th FloorNew York, NY 100061-800-405-0844