Visa works with PayPal, Venmo and others to power interoperable digital payments

Image credit: Visa

Visa is partnering with a number of financial services and payment companies for a new interoperable peer-to-peer (P2P) payment offering, one that allows people to transfer money to friends even if they use another payment service.

While digital payments have undoubtedly changed the world of commerce, the sheer number of payment apps out there has hindered people’s ability to send money to other people without some friction. If they both use PayPal, things work fine. But if they’re not, they either have to make a bank transfer or juggle several different P2P payment apps.

Visa+, as Visa’s new service is called, is designed to solve that problem. Later this year, Visa+ will launch a new integration that will allow Venmo and PayPal users in the US to transfer money between the two platforms. It’s worth noting that while PayPal actually already owns Venmo via its former parent eBay’s $800 million acquisition of Braintree a decade ago, it hasn’t been possible to transfer money in real time between the two services until now.

With Visa+ enabled, neither user in a PayPal/Venmo transaction will be required to have a Visa card linked to their respective accounts. Visa merely acts as the infrastructure and glue between the two services – the user sets up their own unique payment handle linked to their PayPal or Venmo account, and then shares that handle with whomever they want to be paid by. This means no one has to share mobile phone numbers, email addresses or other personal details, which can prove particularly useful for one-off payments between people who are unlikely to interact again in the future.

Visa+. Image credit: Visa

Other companies that have committed to Visa+ for today’s announcement include Western Union, TabaPay, i2C and DailyPay, which Visa says will go a long way toward expanding Visa+ to countless use cases, including the gig and creator economies, as well as online marketplaces.

There are, of course, a number of high-profile omissions from Visa’s initial list of partners, including the likes of Cash App and major digital wallet providers such as Google and Apple. However, interoperability is emerging as a key battleground across the digital landscape, including payments, with the Linux Foundation recently launching the Open Wallet Foundation to support interoperability between digital wallets. Visa+ fits into the wider push, albeit with limited scope in its original form – but Visa is likely to push for more third parties to join ahead of launch.

Visa said it plans to begin making Visa+ available to consumers later this year, with general availability in mid-2024.