Visa announced the launch of Visa Checkout, which replaced V.me, July 16. Now that the revamped product has been in the market for about a month, PNC has commented on its preliminary results.
“Since the rebranding, we have seen the number of customers enrolling in the service double from its previous launch,” said Tom Kunz, senior vice president of digital for PNC, one of Visa’s launch partners for both iterations of its digital payment product in an article on American Banker.
The new branding could explain part of the increased adoption as it more accurately conveys the product’s purpose. However, the timing is likely another factor. Growth in smartphone and tablet-based has greatly exceeded growth in the broader e-commerce market. And the process of entering payment credentials on a mobile device is a well-known consumer pain point that Visa Checkout can address.
“With the abundance of mobile devices in the market, we are finding consumers are using their tablets and smartphones more to shop online,” Kunz said. “At the same time, many checkout experiences on these devices were not quick and easy.”
Visa Checkout is positioned as tool that enables consumers to use (and merchants to accept) traditional payment cards in digital channels as easily as they can at brick and mortar establishments. Visa Checkout supports payments with credit and debit card products from any major network brand. Visa first released V.me in Q4 2012 with support from 53 financial institutions, which serviced over 55 million consumers at the time, as well as 23 merchant partners. More than 180 financial institutions and 170 merchants participated in the launch of Visa Checkout.
The current merchant base represents about $20 billion in addressable payment volume according to Visa. The program could grow very rapidly from here. Visa has also reported that 40 merchants, representing an additional $36 billion in addressable payment volume are in the sales pipeline.
To read the full story, go to American Banker.