Fintechs, even banking apps like N26 and Chime, need help with payments. Several have turned to Visa for features such as card programs, real-time P2P payments, and cross-border payments from customers and to suppliers.
The aim (at least from Visa’s perspective) is to get fintech traffic flowing on the Visa network rather than on some other provider, presumably like Mastercard or PayPal.
“Fintechs are digitizing payments all over the world with digital banks, wallets and extending credit to folks who otherwise wouldn’t have it,” said Terry Angelos, global head of fintech for Visa.
Help Wanted: Compliance, Security
Angelos wants fintechs to do it on Visa rails. That’s why Visa developed the Fast Track program, to bring together the partners fintechs need for security and the various flavors of compliance, such as PCI, KYC, and AML.
It’s an attractive offering when the alternative is identifying, researching, and figuring out who is good in each area of security and compliance on your own.
“We have put together a set of best-in-class partners in each of those areas so they can get up and running as soon as possible,” Angelos said.
Speed, Speed, And Go Faster
Fast Track aims to speed up the process of integrating with Visa.
“The biggest feedback we have received has been the focus on moving quickly,” Angelos said.
For example, Razer, a lifestyle brand for gamers in Asia, wanted a prepaid Visa card as part of their Razer wallet so gamers could use their funds at any of Visa’s 50 million merchants. Time to launch was important to them, he added.
“Having a list of pre-approved partners simplifies it,” said Angelos. “We have a growing list of vetted partners in the stack and we will be adding more who will all be competing for the fintechs’ business. We talk to some of the most sophisticated fintechs, and there are always gaps in their understanding of the payments landscape.”
The Buck Stops, or Starts, With E-Wallets
Around the globe, 2.3 billion wallets are going to be used this year, he added, and they all need to be connected to a payments network.
Visa is also going directly to U.S. venture capitalist firms that are working with fintechs to bring some of their portfolio companies into the program with pre-approvals.
At this point, Visa has announced partnerships with a variety of leading fintech companies, including:
The company also has invested in: