Visa is rolling out a new initiative that will link one physical payment card to multiple accounts, giving U.S. cardholders the option to choose debit or credit using a single card. This feature, already being used in Asia, is set to become available to U.S. consumers this summer.
Known as Visa Flexible Credential, this initiative allows cardholders to customize preferences with their bank. For example, they can choose to use the debit card for purchases below a certain amount, or the credit card for purchases at certain stores. Cardholders will also be able to toggle between payment methods seamlessly, selecting from debit, credit, BNPL, or redeeming rewards points.
Visa cited findings from an internal study from November 2022, which found that more than half of its card users expressed interest in accessing multiple accounts through a single credential.
Bringing Pay by Bank to America
Pay-by-bank is another feature Visa has tested abroad and is now bringing to the U.S. Visa acquired Swedish open banking firm Tink in 2022 and announced its rollout to the U.S. under the name Visa Open Banking Solutions.
“Electronic payments, like ACH transfers, have been left out of the digital revolution,” Visa said in a press release. “With pay-by-bank, Visa is digitizing and streamlining the account-to-account (A2A) payments experience, giving people more choice over how they want to pay, whether that’s an A2A transfer, applying for a loan or paying with another funding source, like a credit card.”
Visa also said it would be using AI to help fight fraud for its A2A payments on RTP networks. Remaining consistent with its strategy of introducing features overseas, Visa Protect for A2A Payments is already live in Latin America and undergoing pilot testing in the UK.
Additional Features
At the forum, Visa also showcased other features it’s prioritizing. U.S. consumers will soon be able to tap their credit or debit cards to their smartphones to add the card to mobile wallets. Additionally, they can tap the card to their smartphones to authorize online transactions.
Moreover, the financial giant is doubling down on its commitment to technological advancement. Visa’s Payment Passkey Service will use biometrics to verify a consumer’s identity, requiring just a quick scan of their face or fingerprint.