Thursday, January 30th, 2020
Card networks have been invading the payment space mainly through mergers and acquisition.
Visa Inc., for instance, is now pacing its growth in the payment sector and moving towards international payment.
Just recently MoneyGram International Inc. publicized the rollout of a first-of-its-kind remittance service to enable global transfers via Visa Direct. Visa’s service permits real-time money-transfers to individuals with Visa-type cards.
Consumers in the US have been enjoying this new service as of Sep. 2019, and now, the new way to pay will set foot in the Philippines and Spain.
Focusing on International Payments
The announcement of Visa Direct’s expansion to overseas markets goes in line with the card brand’s burning desire to offer remittance services on an international front.
In June last year, Visa Inc. publicized that it will enter a similar deal with Western Union. But that was after it took over Earthport PLC in May for a staggering $320 million—to win the bid against major rival, Mastercard Inc.
Having expanded the service to two foreign countries, MoneyGram and Visa said it now has plans to explore other markets worldwide.
“Visa is committed to create the finest money-transfer and cross-border payments experience for businesses and consumers worldwide,” said Bill Sheley, A Senior VP of Visa and International boss of Visa Direct.”
“After testing with MoneyGram and receiving positive consumer reviews, we are now more determined than ever to expand our footprints to more markets globally.”
According to Visa, the future is bright because over a billion Visa-type cards in use globally can support such remittances. The service offered alongside MoneyGram enables money-sending US consumers to use the remittance firm’s site or application to do their transfers.
Other Card Brands On Board
But Visa is not alone in the chase for global money-transfers. MasterCard Inc., is running a similar competing service it calls MasterCard Send.
The two world-known card-brands are on a cut-throat race to make push-payments commonplace in a bid to satisfy the customer’s need for speed when it comes to money transfers.
Push-payments depends on an approach known as the original credit transaction. This strategy was built by card brands initially to enable the refund of consumers. In essence, it reverses the normal flow of finances via card networks enabling money to move from a merchant/retailer to a card owner.
With big card networks on the matter, we can sit back knowing the tomorrow of push-payments is promising and it may soon be a universal service.