The world of digital commerce is ever-evolving. Thanks to new technologies introduced by PassportPaying by credit card and sending and receiving payments will soon be easier than ever.
At the annual Visa Payments Forum in San Francisco in mid-May, Visa announced several new products designed to combat fraud and give consumers and merchants more control over the process. payment process. The company will begin rolling out a suite of new features, including those below, in the US during the remainder of 2024; Some features are already available in some parts of Asia.
Here’s a closer look at what to expect.
Visa Flexible Credentials
The average US consumer carried 3.9 credit cards as of the third quarter of 2023, according to Experian. But credit card rewards enthusiasts also have more credit card accounts than average. There is no such thing as Perfect amount of credit cards as long as you process your account responsibly.
However, if you have multiple credit cards, you may not want to carry them all in your wallet. Whether for safety or convenience reasons, chances are you leave some credit cards at home. A new tool from Visa, called Visa Flexible Credentials, could make managing a life of multiple credit cards easier when pilot programs begin rolling out later this year .
With Visa Flex Credential, you will be able to use a single credit or debit card as a tool to access different payment options. A company survey found that half of credit card users want the ability to take advantage of this technology.
If you don’t understand how this works, here’s an example:
Imagine you visit a local brick-and-mortar store and start the payment process by tapping or inserting your debit card, but before the actual purchase charge occurs, you use an app on your smartphone to change your payment method. Instead of paying with the debit card you tapped or inserted, the transaction will be posted to your credit card – even if you don’t actually have the card in your wallet at the time of purchase.
Related: 5 signs you have too many credit cards
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Tap Everything
Visa also announced changes to tap to pay. The new technology will give customers in the US the ability to add credit and debit cards to their smartphone’s mobile wallet through a tap. For reference, to date, Apple Pay, Google Pay, and mobile wallet users have added credit and debit cards using the camera scan feature on their smartphone or through manual entry.
Additionally, credit cardholders can use the tap-to-confirm feature when shopping online for added security.
Finally, tap on P2P (person to person) which aims to help cardholders increase flexibility and security when sending money to family members and friends. Essentially, the new features will turn any mobile device into a point-of-sale device.
Related: Is it time to put away your wallet? Pros and cons of mobile payments
Visa payment token service
There is no doubt that payment fraud, such as credit card, debit card and P2P fraud, is a common problem in today’s world, but it is a problem that is more likely to occur with payments. digital transactions rather than face-to-face transactions. According to Visa, online payment fraud is 7 times higher than in-person payment fraud. Visa’s new Payment Token service aims to solve this problem.
The Passkey service can confirm the cardholder’s identity using biometric scans, replacing the need for one-time codes and passwords, which can be easier to steal. This tool is similar to how Apple devices use facial scanning or fingerprint detection to approve financial transactions.
Related: Credit card fraud: How to detect and report
When can cardholders expect the new features to be available?
Visa said the company will begin rolling out several new features and digital enhancements in a pilot program in late 2024. After that, the company plans to introduce various products and services by region across the United States.
From there, credit card issuers and individual financial institutions can decide when (and whether) to adopt some of Visa’s new technologies. After all, introducing new digital tools requires an investment of both time and money.
However, it’s important to note that many of these products and services are aimed at reducing fraud and increasing customer loyalty and satisfaction. So it’s likely that more banks and card issuers will want to deploy this technology when it becomes available.
Bottom line
Once Visa introduces new features and financial institutions decide to adopt them at scale, many consumers may find the purchasing process much simpler and more secure. In particular, credit card users can enjoy the option of switching between different payment options without having to carry all their cards at once. However, because this change is not a multi-network solution, its potential benefits may be limited depending on the type of credit card you carry in your wallet.
Related: Is it time to put away your wallet? Pros and cons of mobile payments
