Visa (V.N), is partnering with fintech company Affirm (AFRM.O), to roll out a card in the U.S. that customers can use for both debit transactions and buy now, pay later purchases, reflecting the growing demand for flexibility in payment options.
The company is also launching the feature in the United Arab Emirates via a partnership with Liv Bank and plans to expand into Europe in the coming months, it said on Tuesday.
Customers are increasingly prioritizing 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% of card users want the ability to access multiple accounts and funding sources through a single credential.
Such customers typically have to carry a debit card for everyday purchases and a credit card for larger transactions.
Visa’s “Flexible Credential” feature is available in Hong Kong, Japan, the Philippines, Singapore, Thailand and Vietnam.
Over the next 12 months, it will partner with different digital and traditional banks to expand it, said Mark Nelsen, Visa’s global head of consumer products.
Visa’s 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 evenue streams.
“We provide a platform for the fintechs to innovate at scale, (that) is how we see ourselves,” said Nelsen.
“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,” he added.
Affirm CEO Max Levchin said the company was looking at a product “that seamlessly brings debit and credit together, without late or hidden fees.”
Source: www.reuters.com
