Visa+ Entry from PayPal and Venmo May Enhance Interoperable P2P Payments

Visa Inc. has recently integrated PayPal and Venmo into their Visa+ interoperable peer-to-peer payments system in the United States. This move is expected to increase the number of P2P transactions, according to analyst Vikram Modi, head of Visa+. Visa+ allows users to sign up for a payname associated with a receive-only Visa token, providing a secure and quick way to send and receive payments without sharing personal details.

Fintech Current and The Western Union Co. are next in line to enable Visa+, with Western Union’s CEO Devin McGranahan seeing it as a valuable addition to their business model. This cross-platform P2P payment function is seen as a logical step by Ariana-Michele Moore, a retail-banking and payments advisor, to address the challenge of payment acceptance.

Despite the strong presence of PayPal and Venmo in the P2P payment market, the integration with Visa+ may lead to increased user adoption. Currently, Datos estimates that 75% of consumers use PayPal and 55% use Venmo for P2P payments. Moore compares the consumer adoption of P2P payments to the early days of card acceptance, where consumers used different cards based on merchant acceptance.

Consumer pricing for the Visa+ service will be determined by wallets and merchant partners, with Visa not publicly disclosing its pricing for any products or services. Overall, the integration of PayPal and Venmo into Visa+ is expected to streamline P2P transactions and provide consumers with more convenient payment options.

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