Visa Rolls Out New Tech Rivaling Apple Pay, Teams Up with Affirm for Easier Transactions

May 16, 2024

Visa Inc (NYSE:V) is launching new technology to enhance its position in the e-commerce marketplace. The technology will share more detailed customer preference information with retailers based on their shopping history. 

This data will be securely transmitted using Visa’s proprietary tokens, which protect the connection between consumer bank information and merchants. Consumer consent is required for data sharing.

At a technology conference in San Francisco, Visa CEO Ryan McInerney highlighted that while most consumers are not fully aware of the token technology, they experience smoother transactions because of it, Bloomberg reports.

Also Read: Mastercard’s New Tech Could Change How Banks Handle Money and Securities

He also noted that Visa’s new offerings aim to improve the shopping experience by leveraging vast data for tailored AI-driven interactions. 

To further reduce transaction friction, Visa is introducing a facial recognition payment system akin to Apple Inc’s (NASDAQ:AAPL) Apple Pay, which will work across all browsers and mobile devices.

Moreover, Visa is simplifying payment processes for U.S. consumers by partnering with Affirm Holdings Inc (NASDAQ:AFRM) to introduce a single credential for multiple payment methods, already successful in Asia. 

This initiative will allow banks to add new products to a consumer’s account without needing new account numbers or additional cards. 

Visa and Mastercard Inc (NYSE: MA) analysts noted a $255 trillion opportunity backed by their significant tech investments, including in generative AI.

Visa stock gained over 22% in the last 12 months. Investors can gain exposure to the stock via Litman Gregory Funds Trust Polen Capital Global Growth ETF (NYSE:PCGG) and IShares U.S. Financial Services ETF (NYSE:IYG).

Price Action: V shares are trading higher by 0.11% at $281.80 premarket at the last check Thursday.

Also Read: How Mastercard’s Q1 Results Compare With Rival Visa: 3 Analysts Provide Their Takes

Photo via Wikimedia Commons

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