Visa Expands Global Money Movement Capabilities Beyond the Card with Visa Direct Payouts

Rhea-AI Summary

Visa (NYSE:V) has expanded Visa Direct, its real-time push payments platform, introducing Visa Direct Payouts. This new service connects clients globally to push payments to eligible cards for domestic and cross-border transactions. Visa Direct now reaches over 2 billion bank accounts, enhancing account-to-account capabilities. Notable clients include Standard Chartered Bank and MoneyGram, which aim to improve their money-movement services. Visa Direct Payouts supports various payment scenarios, including P2P, B2SB, and B2C transactions, aiming for operational simplicity and growth in new payment flows.

Positive

• Expansion of Visa Direct with Visa Direct Payouts increases access to over 2 billion bank accounts.
• Supports a wide variety of payment use cases, enhancing customer options.
• Notable clients like MoneyGram showing significant transaction growth, indicating strong demand.

Negative

• None.

Visa (NYSE:V) today announced the expansion of Visa Direct, a real-time¹ push payments platform, with the introduction of Visa Direct Payouts. The new solution allows Visa’s clients and partners around the world to use a single point of connection to push payments to eligible cards for domestic payouts, and eligible cards and/or accounts for cross-border payments.

Visa Expands Global Money Movement Capabilities Beyond the Card with Visa Direct Payouts (Graphic: Business Wire)

“As digital commerce accelerates, Visa is innovating to give financial institutions, governments, individuals and businesses new ways to pay and get paid beyond the card,” said Bill Sheley, SVP, Global Head, Visa Direct, Visa. “The launch of Visa Direct Payouts marks an important milestone in Visa’s expansion of its account-to-account capabilities to now reach an additional 2 billion bank accounts around the world. Backed by the operating scale and performance of VisaNet, the solution integrates Visa’s acquisition of Earthport to transform how Visa’s clients deploy and optimize global money movement programs.”

Flexible Visa Direct Payouts APIs reduce complexities often associated with managing and sending money across multiple networks and intermediaries worldwide. The solution provides operational simplicity to move money globally through a single connection to VisaNet, enabling financial institutions, fintechs, remittance providers and corporate banks to capture new payment flows for growth and value creation. Visa Direct Payouts supports real-time² domestic and cross-border person-to-person (P2P), business-to-small business (B2SB) and business-to-consumer (B2C) use cases, such as insurance disbursements, marketplace seller payouts, providing workers faster access to their earnings, as well as remittances.

Visa’s clients and partners around the world are launching new money-movement programs enabled by Visa Direct Payouts.

• Standard Chartered Bank (Hong Kong) Limited is enhancing its digital International Transfer services for its retail banking customers
• MoneyGram is launching an enhanced money-movement optionality for its customers who are sending and receiving money to loved ones across borders
• KyckGlobal, a Visa fintech partner, enables a variety of B2SB and B2C use cases through its payments engine, including insurance claims payouts, fast funds settlement for SMB marketplaces and quick access to earned wages for independent contractors and hourly workers

Visa Direct Payouts Client and Partner Quotes

“With 152% year-over-year cross-border digital transactions growth for MoneyGram Online in 2020 and an impressive 650% transaction growth for Visa Direct in the fourth quarter³, consumer demand for our digital P2P payment capabilities continues to skyrocket,“ said Alex Holmes, MoneyGram Chairman and CEO. “Our continued expansion with Visa Direct is an important component of our customer-centric strategy to provide a streamlined, frictionless customer journey and real-time transfer capabilities to millions across the globe who rely on our essential service.”

“Our clients work with a diverse set of payees, including contractors and gig economy workers, each with different payment needs, such as a commission payment, expense reimbursement or insurance claim payout,” said Ashish Bahl, KyckGlobal CEO and Founder. “With Visa Direct, we are able to ensure our customers’ clients are paid quickly and securely wherever they access funds, which is more important than ever in today’s economic environment.”

With the addition of Visa Direct Payouts, Visa Direct now provides multi-rail access to 5 billion cards and accounts combined across more than 200 geographies, supporting 160 currencies, connecting to 16 card-based networks⁴, 65 domestic Automated Clearing House (ACH) schemes, seven Real-Time Payment (RTP) networks and five payment gateways. For Visa Direct transactions, Visa offers value-added services, including security and tokenization, bringing peace of mind for SMBs and consumers as they pay and get paid, and move money internationally.

For more information and to connect with our team, please visit the Visa Direct Payouts page.

About Visa

Visa (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of digital commerce on any device for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit About Visa, visa.com/blog and @VisaNews.

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¹ Actual fund availability varies by receiving financial institution, receiving account type, region, and whether the transaction is domestic or cross-border.

² Actual fund availability varies by receiving financial institution, receiving account type, region, and whether the transaction is domestic or cross-border.

³ Source: https://ir.moneygram.com/news-releases/news-release-details/moneygram-international-reports-fourth-quarter-and-full-year-5

⁴ Visa offers the Visa Push Payment Gateway Service to enable push-to-card capabilities for non-Visa cards in the U.S and Canada

View source version on businesswire.com: https://www.businesswire.com/news/home/20210330005157/en/

FAQ

What is the purpose of Visa Direct Payouts launched by Visa?

Visa Direct Payouts aims to simplify real-time push payments to eligible cards, enhancing domestic and cross-border payments.

How many bank accounts can Visa Direct now connect to with its new service?

Visa Direct can now reach over 2 billion bank accounts worldwide with Visa Direct Payouts.

Which companies are partnering with Visa Direct Payouts?

Notable partners include Standard Chartered Bank and MoneyGram, enhancing their digital money-movement services.

What types of transactions does Visa Direct Payouts support?

Visa Direct Payouts supports P2P, B2SB, and B2C transactions, including insurance payouts and faster access to earned wages.

How does Visa Direct enhance operational simplicity for clients?

Visa Direct provides a single connection to VisaNet, reducing complexities in managing payments across multiple channels.