To facilitate interoperable digital payments, Visa collaborates with PayPal, Venmo, and others. For a new interoperable peer-to-peer (P2P) payment product that enables consumers to transfer money to friends even if they use a different payment provider, Visa is collaborating with a wide range of financial service and payment companies. The world of business has unquestionably been altered by digital payments, but the overwhelming quantity of available payment apps has made it difficult for people to send money to others without a little hassle. Everything goes smoothly if they are both PayPal users. If not, customers must either make a bank transfer or manage several P2P payment apps at once.
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This issue is addressed by Visa+, the new service from Visa. Venmo and PayPal customers in the United States will be able to transfer funds between the two platforms later this year thanks to a new connection powered by Visa+. It’s important to note that even though PayPal already owns Venmo as a result of its former parent company eBay’s $800 million purchase of Braintree ten years ago, real-time money transfers between the two platforms have not yet been made feasible. No user in a PayPal or Venmo transaction will be required to have a Visa card connected to their individual accounts once Visa+ is implemented. The user creates their own distinct payment handle that is linked to their PayPal or Venmo account and then shares that handle with anybody they wish to be paid by. Visa essentially acts as the infrastructure and connecting glue between the two services. Since no one needs to give their cell phone numbers, email addresses, or other personal information, this might be especially helpful for making one-time payments to people who won’t likely connect with each other again in the future.
Western Union, TabaPay, i2C, and DailyPay are some of the additional organisations that have committed to Visa+ for today’s announcement. According to Visa, these companies will help extend Visa+ to a variety of use cases, including the gig and creator economies as well as online marketplaces. Of course, there are a number of notable omissions from Visa’s initial list of partners, such as Cash App and significant providers of digital wallets like Google and Apple. However, interoperability is becoming a major point of contention in the digital realm, including payments. To facilitate interoperability between digital wallets, the Linux Foundation recently established the Open Wallet Foundation. Visa+ fits into that larger effort, albeit having a limited reach in its initial iteration. However, Visa will probably push for more third parties to join before it goes live.
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