Visa Recognizes Creators as Small Businesses

Rhea-AI Summary

Visa announced major initiatives for digital creators at Web Summit in Lisbon, officially recognizing them as small businesses. The company is addressing payment challenges faced by creators, with over two-thirds struggling with slow payouts according to Visa's survey. Through Visa Direct, creators can now receive real-time payments to eligible debit cards.

The company also expanded its partnership with Pharrell Williams, collaborating on his philanthropic ventures Black Ambition and YELLOW. Visa will provide financial and digital inclusion resources to YELLOW's students to improve financial literacy. Additionally, Visa announced its inaugural Creator Summit in Tokyo and continues to support creators through programs like 'GetP@id' and various business services.

Positive

• Recognition of creators as small businesses expands Visa's market reach
• Partnership with Pharrell Williams enhances brand visibility
• Implementation of real-time payment solutions addresses key market pain point
• Launch of creator-focused initiatives demonstrates market expansion strategy

Negative

• None.

Insights

Market Research Analyst

This initiative, while innovative for Visa's brand positioning, has minimal immediate financial impact on the company's $600B market cap. The creator economy represents a growing opportunity, with an estimated market size of $250B globally, but this announcement primarily focuses on existing products repackaged for creators rather than new revenue streams.

The partnership with Pharrell Williams and initiatives like Creator Summit are primarily marketing moves to strengthen Visa's position in the creator economy. While Visa Direct's real-time payment capability could attract more creators to the platform, the revenue impact will likely be gradual and modest relative to Visa's core business.

The strategic value lies in positioning Visa as an early mover in formally recognizing creators as small businesses, potentially capturing market share as this segment grows. However, the immediate financial implications are

At Web Summit, Visa Celebrates Creators; Expands Collaboration with Pharrell Williams

LISBON, Portugal--(BUSINESS WIRE)-- At the opening session of Web Summit in Lisbon, Portugal, Visa unveiled significant commitments to digital creators. Acknowledging the impact of creators on the digital economy, Visa officially recognized creators as small businesses. Today, creators can easily and securely pay and be paid with Visa’s financial tools, resources and products made available to small businesses worldwide.

Visa is also helping creators get paid fast. More than two-thirds of creators struggle with slow payouts that hinder their growth¹, according to a Visa survey of creators. Visa Direct is addressing this through partnerships with social media networks and marketplaces to help creators get payouts in real-time² to their eligible debit card.

“It’s incredibly rewarding to see the world finally recognizing creators as the driving force behind the digital economy,” said Jonathan Kolozsvary, Global Head of Small Business at Visa. “We are proud to help creators grow their businesses - whether it’s helping creators access funding with a small working capital solution, or helping creators get paid in real-time to their debit card.”

Visa Teams Up with Pharrell

Visa also announced an expanded partnership with Pharrell Williams – GRAMMY® Award-winning, Academy Award®-nominated musician and filmmaker, as well as an entrepreneur and philanthropist. A brand advocate and star of Visa’s 2024 brand film, “Prodigies,” Visa is proud to partner with Pharrell on two of his philanthropic ventures, Black Ambition and YELLOW. Pharrell founded YELLOW, a non-profit that evens the odds for youth through education in 2019. As part of the expanded partnership, Visa will provide financial and digital inclusion tools and resources to YELLOW’s students, with an aim to improve financial literacy. Pharrell announced the partnership alongside Visa CMO Frank Cooper, III at Web Summit, where they also discussed how businesses and individuals can harness the power of the creator economy.

“Visa has long recognized that creators play a critical role in shaping culture, which has a significant impact on commerce,” said Cooper. “Pharrell embodies the creator spirit, and we’re excited to expand our partnership.”

“As a creator, artist and philanthropist, I’m passionate about helping others pursue their dreams,” said Pharrell Williams. “This collaboration enables us to propel students and Black and Hispanic-owned small businesses forward, instilling a spirit of relentless improvement and inspiring them to strive for excellence daily.”

These commitments stand alongside ongoing support of the creator community. It joins programs including ‘GetP@id’, Visa’s social series where influencers support and teach mentees how to turn their passions into money, and Visa’s inaugural Creator Summit. The two-day event will be hosted in Tokyo later this month, in conjunction with industry leaders like Amplify and emerging influencers. Partnering with Visa experts, aspiring and growing influencers will learn how to take the next step in their small business digital journey, including the best way to pay and be paid.

Visa helps make it easy to access the digital economy. With its full suite of payment services designed to help creators and all small businesses pay and get paid – from Visa Business credit and debit cards, business reporting, payment controls and digital payment management platforms to financial education and business skills training, including Practical Business Skills globally – Visa is innovating to support the growing small business community.

Creators can learn more about how Visa can help grow their business here.

About Visa

Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at Visa.com.

¹Marketplaces Survey (March 2020). Commissioned by Visa and conducted by Raconteur among 750 marketplace sellers, 224 of which were digital creators.
² Actual fund availability depends on receiving financial institution and region

View source version on businesswire.com: https://www.businesswire.com/news/home/20241112254574/en/

Media Contact

Conor Febos, Visa

Press@Visa.com

Source: Visa Inc.

FAQ

What new services did Visa (V) announce for creators at Web Summit 2023?

Visa announced real-time payment capabilities through Visa Direct, recognition of creators as small businesses, and access to their full suite of financial tools and resources typically available to small businesses.

How is Visa (V) partnering with Pharrell Williams in 2023?

Visa is partnering with Pharrell Williams on his philanthropic ventures Black Ambition and YELLOW, providing financial and digital inclusion tools for YELLOW's students, and featuring him in their 2024 brand film 'Prodigies'.

What percentage of creators face payment delays according to Visa's (V) survey?

According to Visa's survey, more than two-thirds of creators struggle with slow payouts that hinder their growth.

Where will Visa (V) host its first Creator Summit?

Visa will host its inaugural Creator Summit in Tokyo later this month, partnering with industry leaders like Amplify and emerging influencers.