Visa Inc. (NYSE:V) is breaking barriers (almost literally) with their latest announcement introducing the ability to receive and send funds to other Visa users anywhere in the world.
In an early morning press release the payment processing leader said that they have been working on this breakthrough service to extend their network and provide a greater range of payment exchange.
The move comes in an constant effort to bring efficiency to their customers says global head of products at Visa Inc., “For fifty years, Visa has worked to simplify payments at the merchant point of sale; we are now evolving our network capability to make it easier for our account holders to pay one another.”
How Visa Personal Payment Works
The payments can be transferred across Visa accounts including credit, debit and prepaid accounts. All users need to do to transfer money is obtain some information from the recipient to enter into the system, including:
- the 16-digit Visa account, and
- their email address or mobile phone number
The funds will then be transferred from your bank account to the Visa account of the recipient. Visa has teamed up with CashEdge, Inc. and FiservInc.—two leaders in the electronic person-to-person payments—to provide even more accessibility to their customers. The partnership will integrate VisaNet with Popmoney and ZashPay, two person-to-person platforms run by CashEdge and Fiserv.
PayPal Watch Out
Visa’s announcement begs the question, ‘What about PayPal?’ Its seems that their new service is extremely similar to the services offered by PayPal. Although Visa has positioned themselves as a new competitor in the P2P payment market, PayPal probably isn’t feeling too threatened considered they are on pace to break $6 billion in sales by 2013.
This new service would eliminate the need for checks, wire transfers and even taking out cash from the ATM, meaning banks will probably feel the worst of it. Big Banks are already struggling with new reforms including the interchange fee cap.