Generalised Services on Visa Cards
- Visa US opens a national P2P fund transfer service reserved to American holding a Visa account (debit, credit or prepaid card). Not only the sender can use his Visa card to send funds but he can also choose to transfer the amount from his account or by depositing cash at a participating Visa bank counter in the United States. The sender identifies the recipient with his e-mail address, his mobile phone number or his card’s PAN (16-digit Primary Account Number).
- American processors FISERV and CashEdge are in charge of providing technical support. FISERV operates ZashPay, an American network of 500 P2P banks which performs a transfer within 24 hours. CashEdge operates a similar service for 200 banks.
- This service will be proposed by American banks as of the second semester 2011. It relies on the existing Visa international funds transfers offer, for which Visa works with MoneyGram and Bancomer, two fund transfers specialists.
- Visa had to partner two specialists in P2P fund transfers, rather than simply maintain the traditional card payment model. This service opened to internal US transfers is intended to challenge PayPal and its likes, but also respond to UpSquare’s breakthrough on the very similar segment of one-off mobile payments (convenient even though less secure).
- Competitive pressure is now increasing. On 28 March, American Express announced an Internet and mobile payment offer (“serve.com”). This service goes along with a free prepaid card. “Serve” makes it possible to purchase goods from AmEx merchants and perform P2P transfers. The customer can reload his card for free during the first six months via credit transfer, debit or credit card payment or by receiving the funds transferred from another Serve account. In addition to the dedicated website and possible access via Facebook, the customer can also use mobile applications (iPhone and Android).
- In a different move, American card payment scheme Discover decided to partner PayPal and propose P2P services too.