Visa to take on PayPal with person-to-person payments in the US

By on March 18, 2011, 11:07 AM
Visa has announced that US consumers will soon be able to receive and send funds to any eligible Visa credit, debit, or prepaid account, anywhere in the world. Visa will no longer just enable payments at the point of sale, but will also enable consumers to pay one another.

The new Visa personal payments service is made possible through technical enhancements to VisaNet, Visa's global payments processing network, and through the introduction of a new Visa transaction type that allows financial institutions to accept incoming funds. Bank customers of participating financial institutions will have the option to select a Visa account as the destination for funds when making a personal payment; all they have to do is enter the recipient's 16-digit Visa account, e-mail address, or mobile phone number.

Visa has also announced strategic product agreements with CashEdge and Fiserv, two of the leading providers of electronic person-to-person payment, account transfer, and bill payment services to US financial institutions. CashEdge and Fiserv will have access to VisaNet, enabling them to integrate the Visa personal payment service into their respective person-to-person platforms: Popmoney and ZashPay. The first US financial institutions are expected to make Visa personal payments available to their customers through CashEdge and Fiserv by the second half of 2011.

Visa personal payments are already offered by financial institutions around the world with more than 70 programs enabling consumers to send funds to Visa accounts. Now the service is finally coming to the US.

"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," Jim McCarthy, global head of products at Visa, said in a statement. "Through our agreements with Fiserv and CashEdge, we can accelerate the delivery of new and innovative Visa payments services, and better enable financial institutions to extend these services to customers."





User Comments: 8

Got something to say? Post a comment
Guest said:

Hoorah ! Paypal is an evil organisation with an appalling 'user agreement' that allows them to freeze funds and bleed your bank account if they have the whim to do it. It's happened to thousands and thousands of people - just google "paypal is evil".

Death to Paypal ! Hooray !

Guest said:

The first paragraph makes no sense

'Visa has announced that consumers in the US will soon be able to receive and send funds to any eligible Visa credit, debit, or prepaid account, anywhere in the world. '

is it only the USA or "anywhere in the world" ???

treetops treetops said:

Anywhere in the world? Time to pay someone in a third world 10 cents a hour to do my college homework lol.

Benny26 Benny26, TechSpot Paladin, said:

Paypal does need something to stand upto it...I doubt this is gonna make a dent though.

matrix86 matrix86 said:

Guest said:

The first paragraph makes no sense

'Visa has announced that consumers in the US will soon be able to receive and send funds to any eligible Visa credit, debit, or prepaid account, anywhere in the world. '

is it only the USA or "anywhere in the world" ???

Haha. Yeah, the wording here is terrible. Instead of "consumers in the US" it just needs to read "consumers". That is unless this is limited to the states, in which "anywhere in the world" would need to be taken out. But what i'm sure it's saying is that anyone with a Visa account of some sort can send money to and receive money from anyone else anywhere in the world with a Visa account.

While the paragraph is pretty self explanatory (after all, how can this be limited to just the states even though you can send and receive anywhere around the world?), for an article, it needs to be worded a little better.

Rasta211 said:

Thank you Visa.

Now I can get paid faster without incurring bank transaction fees.

mario mario, Ex-TS Developer, said:

Square is where the innovation on person-to-person payment is happening

captaincranky captaincranky, TechSpot Addict, said:

Hypothetically, if someone pays me $10.00 to my Visa Credit Card, and I owe Visa $10,000.00 dollars, does that mean that I'll only owe them $9990..00 as of the next statement? (Excluding accrued interest, of course).

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