Visa and PayPal announced that they are extending their existing partnership to provide consumers and small businesses with faster payments through the debit push payments, which is a credit transaction across their debit network. This partnership extends across several brands including not just the flagship PayPal product but also Hyperwallet, Venmo, Xoom, Braintree, and iZettle.
Domestically, PayPal also uses The Clearing House RTP real-time gross settlement system for instant payments, but as this system is still building out its reach, debit push payments can reach consumers and business where RTP can’t. Visa also has global capabilities with built-in FX solutions which can be used to transfer funds to other consumers and to pay businesses.
TearSheet’s article on the topic has this to say about the cross-border, cross-currency capabilities:
While digital is crucial for domestic money movement when senders and recipients are physically distanced from each other, digital channels for cross-border money transfers are just as critical. To power faster access to funds around the world, Visa and PayPal recently announced the extension of their global partnership for consumers and small businesses sending or receiving money via PayPal, Venmo, Xoom, Braintree, Hyperwallet and iZettle. This includes expanding PayPal’s Instant Transfer service globally, using Visa Direct’s real-time payment capabilities. Through this collaboration, eligible merchants and consumers can now receive money more quickly and easily, eliminating the friction and delays associated with traditional channels.
You can also view a recent survey Visa conducted called Visa ‘Back to Business’ Report.
Overview by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group
