Visa has said that it was rolling out a flexible payment feature in the United Arab Emirates and the U.S. This is as it looks to capitalize on the growing demand for a variety of transaction options.
The “flexible credential” feature, already available in Hong Kong, Japan, the Philippines, Singapore, Thailand and Vietnam, lets customers use a single card to pay from different funding sources, the payments processor said.
Customers are increasingly prioritizing convenience and flexibility in payments, especially as e-commerce flourishes. Hence, companies are taking 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.
“Most people think of their finances on a month-to-month basis. Breaking down the cost of an item helps people with their financial decisions and allows retailers to sell more,” said Odysseas Papadimitriou, CEO of personal finance firm WalletHub.
For the U.S. rollout, Visa has partnered with fintech company Affirm, which has 1.4 million active cardholders. It has teamed up with Liv Bank for the UAE expansion.
Visa plans to expand the feature into Europe in the coming months, said Mark Nelsen, its global head of consumer products.
The 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 revenue streams.
“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,” Nelsen said.
Affirm CEO Max Levchin said the company was looking to bring more people a product “that seamlessly brings debit and credit together, without late or hidden fees.”
