Viewpoints

Visa’s Blog – Visa Viewpoints

PERSPECTIVES ON DIGITAL CURRENCY

Jun 10, 2013

Consumers

Accelerating the migration to electronic payments through mobile acceptance solutions

The way we pay has evolved dramatically over the last 50 years. The “electronification” of commerce has helped to stimulate economic growth, reducing inefficiencies and providing consumers convenient and secure access to their funds. Mobile technology, in particular the introduction of low cost mobile “card readers” is helping to drive the migration from cash and checks to electronic forms of payments.

From emerging markets, where traditional acceptance infrastructure simply does not exist, to farmers markets and coffee shops in developed countries, mobile point-of-sale acceptance is helping to displace cash payments and enabling merchants of all sizes – even the smallest ones – to accept card payments. It is an inventive solution from both the technology and business model points of view, which leverages the broad penetration of mobile phones to add acceptance to those segments of merchants where cash used to be the only available option.

At Visa, we see great potential to accelerate the migration to electronic payments through mPOS solutions. By helping to promote the use of these services in the Visa system, we believe they will have a greater uptake and benefit more consumers and merchants worldwide. But we want to do that in a responsible way, so to ensure that innovative payments like mPOS technology provides the same security, reliability and scale as traditional payment terminals.

This is why earlier this year we launched the Visa Ready Program, a streamlined process for the testing and approval of new payment solutions that enables our business partners to more rapidly deploy products for use with Visa payments. Last week, we’ve announced five new leading mobile acceptance providers to join the program: AnywhereCommerce, iZettle, Miura Systems, SumUp and Swiff. Two of them, AnywhereCommerce and Miura System, already have mPOS devices that are approved to accept Visa payments.

There are over two billion Visa cards around the world today and with every new mPOS device that is put out there lays an opportunity to displace paper-based payments. In the United States alone, mPOS can help to migrate more than $1.1 trillion yearly from paper to electronic payments[1]. This is a tremendous opportunity for solutions providers, financial institutions and merchants. Visa is ready to help our clients and partners seize this great momentum, while at the same time giving consumers the peace of mind they need to transact in the mobile channel.

For detailed information on last week’s announcement, click here.

 


[1] Javelin Strategy & Research, Mobile POS (Point of Sale) Business and Market Impact 2013: Emerging Technologies Expand Reach with Lower Cost, Disruptive Services, April 2013, www.javelinstrategy.com

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Posted by: Matt Dill, Global Head of Business Development on June 10, 2013 at 11:56 am

Feb 26, 2013

Postcards from #MWC13: Visa Global Head of Product Jim McCarthy

Jim McCarthy, Visa’s Global Head of Product, takes a break from the hustle and bustle of Mobile World Congress to offer his perspective of why mobile payments are at the center of this year’s show.

See  Jim’s insights on how the industry dialogue is evolving and why there is  an increased focus on consumers, merchants and commerce in 2013–and the coolest thing he has seen at #MWC13:

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Posted by: Lucas Mast, Visa Corporate Relations on February 26, 2013 at 10:13 pm

Oct 22, 2012

Browse anytime; buy anywhere

American actress Bo Derek once remarked that “whoever said money doesn’t buy happiness simply doesn’t know where to go shopping”. And it now seems that with the growing popularity of online shopping, for many people, this might just be a click away.

Our latest data from the Visa e-Commerce Consumer Monitor Research 2012[1] shows that people are shopping online regardless of where they are, with 9 in 10 consumers from eight countries surveyed saying they have made an online purchase in the past year. This figure is expected to continue to grow with 92 percent of our respondents indicating that they are likely to shop online in the next year.

The 2012 research has highlighted three key trends propelling the mass adoption and rise of e-Commerce.

Beyond just online payments, online browsing is now an essential part of people’s shopping cycle – driving both online and offline purchases. 98 percent of our respondents said that they have gone online for information-gathering in the past year to increase their knowledge of a product and to decide on a purchase location for items such as books, CDs, DVDs, fashion and groceries.

The ability to access the internet via multiple electronic devices has also contributed to the rise in online shopping. Four in 10 people have browsed online for products or services via a mobile phone or tablet device in the last year, and in countries with a higher penetration of smartphone and tablet devices such as Hong Kong, Singapore and Korea, we have seen browsing on mobile phones exceed 40%. Hong Kong in particular saw 13% of online purchases on mobile phones and 11% on tablets. The growing prevalence of smartphone and tablet use translates to greater online access for a consumer to retailers anytime, anywhere; and as a result, we expect to see more people shopping on-the-go and more often.

We have seen a rise in consumer perception of online security and this has also encouraged more online purchases. This view was held by close to half of those we surveyed, who attributed the shift to the availability of more online payment security features such as Verified by Visa and security around personal and financial information upheld by financial institutions and online merchants.

Armed with a deeper understanding of consumer attitudes to online shopping, Visa strives to continually deliver next-generation solutions that allow consumers to enjoy the same convenient, reliable and secure experience they have come to expect from us – both offline and online.

For the full report on Visa’s APCEMEA e-Commerce Consumer Monitor Research 2012 survey, please visit here.


[1] The Visa APCEMEA e-Commerce Consumer Monitor Research 2012 is an online survey conducted by TNS from March to June 2012. The survey asked over 8,000 respondents from eight countries around the world (Hong Kong, Korea, Japan, Singapore, Vietnam, Russia, Philippines and South Africa) about their online payment attitudes and behaviour. Respondents were internet users (accessing internet at least once a week), aged 18-55 years old, selected based on a soft quota taking into consideration age, gender and annual household income.

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Posted by: Maureen Siah, ECommerce, Visa on October 22, 2012 at 8:50 am

May 7, 2012

V.me: Making Next Generation Commerce a Reality

Visa’s mission is to become the best way to pay and be paid for everyone, everywhere.  Our premise is simple: to deliver the security, simplicity, and personalization merchants, financial institutions and consumers demand as payments technology continues to evolve.

While there are many new players in the payments space, Visa is a trusted brand around the world for the security, reliability and convenience that come with Visa’s 50 years of experience creating one of the largest payments networks in the world – capable of processing up to 20,000 transaction messages per second. We think we do the hard part better than anyone else – and our reputation is proof of that.

V.me by Visa is our new service designed to take the friction out of commerce wherever consumers shop – online today, and soon via mobile device or at a retail store.  Click a mouse, touch a mobile browser, or wave at the point of sale to access any major payment network account – V.me will deliver the simplicity and personalization promised by Internet and mobile payment technologies in ways consumers can trust.

Over the last several months, we’ve launched the V.me website, the V.me Developer Center and have internally tested the service with employees.  We have now reached another milestone with the beta launch of V.me with our first online merchant as we move toward the commercialization of V.me in the United States.

In the U.S., V.me is now available in beta for consumer enrollment and online merchant checkout at Rakuten Buy.com, a leading retail marketplace with more than 18 million customers. The V.me acceptance mark is now visible on the Rakuten Buy.com login/checkout pages allowing consumers to enroll Visa and non-Visa accounts in V.me and make online payments with a simple username and password through the merchant’s website.  Users can also set personalized alerts to receive near-real-time notification of transactions on enrolled Visa accounts.

While our focus is currently on the U.S., we are also working on plans for how to scale V.me in additional countries around the globe to ensure that the V.me experience meets Visa’s standards for security, convenience and reliability as it becomes more broadly available.

In the coming weeks and months, we’ll be adding more top eCommerce merchants that will accept V.me.  Rakuten Buy.com is the first of a group of merchants that will trial enrollment and online capabilities for V.me as we focus on building acceptance among the top eCommerce retailers.  This will ensure that consumers who sign up will be able to use V.me at their favorite places to shop.

Regardless of where a consumer signs up, their information is entered and stored on Visa’s secure servers; they can add Visa and non-Visa accounts from any issuer; and use V.me at any merchant that accepts V.me.

We’re excited about the role V.me will play to strengthen the entire commerce ecosystem, making it easier for consumers, merchants and financial institutions to do business with one another.

 

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Posted by: Jennifer Schulz, Global Head of eCommerce on May 7, 2012 at 10:39 am

Dec 8, 2011

Consumers’ Association of Canada Study Brings the Consumer Voice to the Table

When it comes to making purchases, a fundamental consumer expectation is that the price advertised will be the price paid at checkout. Penalizing the consumer through added fees or “surcharges” is a practice Visa strongly opposes and is viewed as harmful for unfairly shifting the cost of electronic payments onto consumers.

Recently, the Consumers’ Association of Canada (CAC) released study results on Canadian attitudes towards choice and surcharging at the point of sale. The study affirmed Visa’s strong, pro-consumer sentiments – consumers do not want to be penalized for using their preferred method of payment. In fact, 84% of Canadians oppose surcharging when they choose to pay by credit card and 90% believe they should have the right to choose their preferred payment method be it cash, debit or credit.

The Canadian Competition Bureau is attempting to eliminate Visa’s “no-surcharging and honour all cards” protections for consumers. This is an action that Visa vehemently contests.

Visa’s ‘no surcharging’ policy was created specifically to protect consumers from merchants who seek to impose checkout fees, punishing consumers who choose the convenience, security and reliability of Visa over other methods of payment. 90% of those surveyed by the CAC were unaware of the Competition Bureau initiative to allow merchants to reject a particular form of payment. Visa’s “honour all cards” protection was implemented to prevent merchants from reaching into consumers’ wallets and dictating which payment products they can use. The policy requires that any merchant who elects to accept Visa products for payment must accept all Visa-branded cards. Canadian merchants are able to choose to accept only credit or debit domestically issued cards without having to accept both according to the Voluntary Code of Conduct for the Debit and Credit Industry. Removing this pro-consumer policy will lead to consumer confusion and eliminate consumer choice at the point-of-sale.

Evidence indicates that in those few countries that permit surcharging today, including Australia and the United Kingdom, many merchants have been penalizing their customers with excessive surcharges that far exceed the cost of card acceptance. Surcharges in Australia are now as high as 10 per cent; well above the one to three percent merchants pay their banks for card acceptance. In fact, the Australian situation has become so contentious, that the Payments System Board of the Reserve Bank of Australia is now undertaking a review of their surcharge standards.

Visa remains committed to empowering consumers through a choice of products and resources that allow them to conveniently and responsibly manage their finances. As such, it’s critical that Canadian policymakers review the findings of the CAC study to understand why there will be resounding opposition to any attempts to impose additional checkout fees or dictating which payments products a consumer can use.

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Posted by: Melissa Cassar, Visa Corporate Relations, Canada on December 8, 2011 at 7:00 am

Nov 4, 2010

Visa Gift Cards: The Preferred Holiday Gift

42 percent of consumers still have unopened gift from last seasonIt’s that time of year again, when many consumers will be challenged to find the perfect gift for everyone on their holiday lists. And no wonder it’s a challenge – according to the Visa 2010 Holiday Gift Giving Survey42 percent of consumers still have at least one unopened or unused gift sitting in the back of their closet from the last holiday season; Nearly as many (38 percent) admit to returning at least one gift from last year, and 28 percent admit to re-gifting at least one of their holiday gifts from last year.

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Posted by: Liz Nunan, Visa Corporate Relations on November 4, 2010 at 9:07 am