Visa's gets real about faster payments

Visa is going whole hog into the faster payments arena. The card giant just announced an enhancement to Visa Direct, its P2P payment service, with promises to fund U.S. bank accounts linked to eligible debit cards in a minute or less.

Plans are to make this move closer to real-time funding available in April 2025.

In addition to enhancing cardholder experiences, the update opens new avenues for business and governments to enhance operational efficiencies, deliver better customer experiences, and foster trust among clients, Visa explained in a press release. That is, they no longer have to worry about whether the check is in the mail, so to speak.

"Today, Visa Direct processes billions of real-time transactions in the US, across 50+ use cases, making it a preferred choice for consumers when receiving money from businesses or moving money between their accounts. This change underscores Visa's commitment to accelerating real-time payments," said Jim Filice, Visa VP in charge of real-time payment initiatives. "At Visa, we are constantly striving to innovate and provide the best possible money movement experiences, and this update will significantly enhance the speed and convenience, while maintaining strong security standards."

Playing catch-up

Visa, you might say, is playing catch-up, particularly with Mastercard.

The company said Visa Direct now reaches 99 percent of bank accounts in the United States and 11 billion endpoints, including cards, bank accounts and digital waters. According to the company's website Visa Direct serves over 190 markets and supports better than 160 currencies. Common use cases involved splitting bills with friends, moving money between accounts, and receiving insurance claim payouts or workers earned wage payouts.

Visa Direct isn't new. It's been around for more than a decade, supporting P2P payments. Its Mastercard competitor is Mastercard Send. Mastercard also owns Vocalink, which is the technology backbone of RTP, the real-time payments network operated by The Clearing House. RTP is the primary vehicle for moving payments initiated via Zelle.

In recent years, Mastercard has announced a slew of real-time payment solutions for businesses and consumers, including B2B payments, consumer refunds and digital wallet integrations that enable fast payouts to apps like PayPal and Venmo.

"Faster payments are crucial for the modern economy, and this move by Visa is a significant step forward," said Reed Luhtanen, executive director and CEO at the U.S. Faster Payments Council, of the Visa Direct enhancement. "Upgrading the U.S. payment system is essential for secure, near-immediate funds availability. Visa's initiative sets an exemplary model for financial institutions to meet the demands for speed and efficiency."

As Visa noted in a blog on its website, Visa Direct helps boost customer loyalty and expand opportunities by reducing money movement friction, especially across borders, suggesting it will become a go-to for cross-border P2P payment activity.

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