6 months after release, visa flexible credential (VFC) Olive and Japan, visa We're bringing all-in-one payment credentials to two new use cases, both announced on Tuesday (November 12).
According to the payment network, VFC is being rolled out in the United States; affirm card (already on the market), is a buy now, pay later (BNPL) provider debit card that allows consumers to choose to pay over time for transactions made through the Affirm app. and Neobanks in other locations, United Arab Emirates (UAE) Liv VFC debuts, allowing users to switch between multiple currency accounts from one card.
The appeal of having a single payment credential can Link and switch multiple funds saucefrom credit to debit to check and back again — No need to access another app or shuffle plastic cards — It's already showing up in the numbers.
In an interview with Karen Webster of PYMNTS, mark nelsenChief Consumer Product Officer, Visa; observed The company says it has 3 million customers using VFC. olive card from Sumitomo Mitsui Card Co., Ltd. It was published in the region in April this year.
“Consumers are actively using this product, actively switching between debit and credit cards, buying now and paying later, and about 70% of customers are actively using this product,” he said. “We see people 'switching' to credit cards.” individual I am using Debit them more frequently for daily expenses and credit them for big ticket items.
Nelsen said Visa and Affirm have been working together for two years, and Affirm will leverage VFC to create a new account that will allow the 1.4 million consumers with Affirm cards to make payments using virtual debit products. He said that he plans to create a now Or pay over time wherever Visa is accepted.
“What we're doing is helping Affirm reach as many customers as possible and giving them the ability to pay in the following ways.” they are I want it,” Nelsen said.
As for the new account itself, Nelsen said consumers will be able to set transaction parameters depending on the issuing company, using debit for transactions below a certain amount and BNPL for payments above that threshold. Said it may automatically choose to use it. There is no change in the flow of funds to the seller and they are paid immediately.
Regarding his qualifications, Mr. Nelsen said: “We offer people a way to use different credit facilities, including BNPL, responsibly and pay over time.”
Liv simplifies UAE border crossing
In the UAE, digital bank Liv uses flexible credentials to cross the border You can access and pay for multiple currency accounts from one card. For Nelsen, the combination of Liv and Flexible Credentials eliminates the hassle of having to deposit, access, and spend funds in different accounts, each with its own 16-digit number and accompanying plastic piece. I said it would be done. According to Visa data, the UAE's cross-border volume is one of the fastest growing among the countries with the largest border crossings.
“Now you have one card number and one credential; actually “We can leverage these accounts behind the scenes,” Nelsen said, adding, “This is a great innovation from a consumer perspective.”
Nelsen said Visa will support six currencies at launch, including the British pound and dollar.to make it easier for Liv customers who live abroad and want to transact locally., Or send children to study abroad to move money cross the border using local currency.
“I wanted Liv make Certainly at that time [their customers] I'm overseas [they] can Use your local currency the easy way” Nelsen said of Liv. Visa Flexible Credentials automatically routes transactions to your account using the appropriate transaction currency. Inside the store Or buy online.
Next steps for flexible credentials
Nelsen told Webster there are 15 additional countries where banks and fintech companies are working on various use cases for flexible credentials. One promising area is in small and medium-sized businesses, where in Japan (and Olive) small businesses can use VFC to access business and personal accounts within a single credential and switch between the two. can.
Furthermore, “we [also] We thought that paying with points and even paying with virtual currency could be included in the multiple methods. equally More practicality [could be added] Depending on your qualifications,” he said.
Regardless of your use case or spending pattern, Nelsen told Webster,e We want to make the user experience as convenient as possible for consumers. — This is to give them control over how the deal is financed. ”
