Visa has announced it is partnering with PayPal and Venmo to pilot Visa+, a service that aims to help individuals move money between different person-to-person (P2P) digital payment apps.
It will be effective later this year when Venmo and PayPal users in the US will be able to start moving money between the two platforms.
As a basic requirement, users looking to transfer money will have to set up a personalised payment address linked to their Venmo or PayPal account. Users of either app will be able to receive and send payments quickly and securely between the platforms, Visa said, while they will not be required to have a visa card.
Visa partners DailyPay, i2c, TabaPay and Western Union, will also integrate Visa+ within their platforms, which, the payments giant said is part of a joint effort to build interoperability across payment platforms. A key benefit of the collaboration will also be the ability to enable more use cases including gig, creator and marketplace payouts.
Chris Newkirk, Global Head of New Payment Flows at Visa, said: “Consumers continue to seek simple and seamless ways to digitally move money between friends and family, including the ability to send money between different payment platforms.”
He added: “We are thrilled to partner with like-minded innovators to broaden the reach of P2P payments across platforms. Through this collaboration, Visa+ can help break down barriers for payment app users as they connect, engage and move money.”
Visa+ is expected to launch for US consumers with select partners in late 2023 with general availability planned for mid-2024. Interoperability, which brings issuers and acquirers together to undertake, clear, and settle payment transactions has become increasingly important as the number of players in the payments industry continues to grow. Greater compatibility between different systems can ensure more efficient universal payments and greater consumer retention.
“We are honored to partner with Visa on our mission to make Earned Wage Access available to everyone, everywhere,” said Kevin Coop, CEO, DailyPay.
“By empowering workers with choice and control over their earned pay, we enable them to pay bills on time, spend, save, or invest on their own schedule. And through participating wallets, their earned wages could be available the moment they earn it using DailyPay and Visa+,” he added.
