Card issuing major Visa announced rolling out a flexible payment feature in the US and the UAE, in a bid to capitalise on the growing demand for a variety of transaction options.
The “flexible credential” feature, already available in Hong Kong, Japan, the Philippines, Singapore, Thailand and Vietnam, lets customers use a single card to pay from different funding sources, the payments processor said, Reuters reported.
Customers are increasingly prioritising convenience and flexibility in payments, especially as e-commerce flourishes, prompting companies to take proactive steps to maintain their edge in an industry being reshaped by digital disruptors.
A Visa study found that 51 per cent of card users want the ability to access multiple accounts and funding sources through a single credential.
“Most people think of their finances on a month-to-month basis. Breaking down the cost of an item helps people with their financial decisions and allows retailers to sell more,” said Odysseas Papadimitriou, CEO of personal finance firm WalletHub.
For the UAE rollout, Visa has partnered with Liv Bank, while the card processor has teamed with fintech company Affirm for the US rollout.
Visa plans to expand the feature into Europe in the coming months, said Mark Nelsen, its global head of consumer products.
The partnership with Affirm also reflects the growing alliance between fintechs and traditional financial players.
While typically viewed as competitors, such collaborations can allow both parties to unlock new revenue streams.
“It’s a little bit easier for the fintechs to get started on this. But as the ecosystem matures, you’ll see some legacy banks start to take advantage of it as well,” Nelsen said.
Affirm CEO Max Levchin said the company was looking to bring more people a product “that seamlessly brings debit and credit together, without late or hidden fees”.
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