Visa has announced its partnership with fintech firm Affirm, and opens a new tab to launch a card in the US that customers can use for debit and buy now, pay later transactions, reflecting the growing demand for flexibility in payment options.
The company said on Tuesday that it will also launch this feature in the United Arab Emirates through a partnership with Liv Bank and plans to expand into Europe in the coming months.
Customers are increasingly prioritizing convenience and flexibility in payments, especially with the boom in e-commerce, prompting companies to take proactive steps to maintain their edge in an industry being reshaped by digital disruptors.
A Visa study found that 51% of card users want the ability to access multiple accounts and funding sources with a single authorization.
These customers typically need to carry a debit card for everyday purchases and a credit card for larger transactions, and Visa’s Flexible Credential feature is available in Hong Kong, Japan, Philippines, Singapore, Thailand and Vietnam.
Over the next 12 months, Visa will partner with different digital and traditional banks to expand, said Mark Nielsen, Visa’s global head of consumer products.
Visa’s partnership with Affirm also reflects the growing alliance between fintech companies and traditional financial players. While they are typically viewed as competitors, such collaborations can allow both parties to open new revenue streams.
“We provide a platform for fintech companies to innovate at scale, (that’s) how we see ourselves,” Nielsen said.
“It’s a little easier for fintechs to get started with this. But as the ecosystem matures, you’ll see some traditional banks start to take advantage of it as well,” he added.
Affirm CEO Max Levchin said the company was looking for a product that “combines debit and credit seamlessly, without late fees or hidden fees.”
