Covid-19 transformed the world as we knew it. Not only did it lock down people in their homes for extended periods, it also catapulted the digital economy into a new growth phase. People were not able to take their hard-earned salaries home to their families. Others were stranded in places they did not plan to spend time in. Businesses were also affected. Tasks that usually happen in person had to happen remotely. Suppliers and employees had to be paid remotely, and money needed to be moved in real-time.
Enter Visa Direct, a global money movement network that moves money near-real time. According to Maria, Visa Direct is embedded in the Visa system to enable different types of transactions to capture new money flows between parties for various use cases. “Basically, it helps facilitate fast delivery of funds to eligible cards, bank accounts and even wallets globally. It includes person-to-person account transfers, business and government payouts, and small business settlements. Our mission is to connect the world through the most innovative, convenient, reliable and secure payment network by enabling individuals, businesses and economies to grow.”
In a nutshell: Visa is the way to pay and get paid for everyone, everywhere.
Peer-to peer-transfers
Facilitating the transfer of funds between two people, Visa Direct sends money to cards or bank accounts internationally. Some partners working with Visa Direct include MoneyGram, Western Union and Transfer Wise.
Other applications of Visa Direct are in the crypto market. There is huge growth potential in this market where platforms like Coinbase and Binance use the Visa technology for users to cash in or withdraw the crypto funds they have earned. “There are even micro-lending opportunities in the lending market,” Maria says.
Another example of businesses benefiting from this convenient way of transferring money is Airbnb. “Hosts can receive their rental payments through Visa Direct and the funds are pushed directly to their debit card.”
eBay launched seller payouts on their platform earlier this year. In the USA, Visa has enabled employers to do instant payouts to employees. “Businesses can now pay commissions or bonuses out this way. The funds appear almost immediately in the employee’s account.” It is a useful feature that contributes to employers remaining competitive in the harsh conditions caused by the Great Resignation trend worldwide. It enables companies like Uber to pay drivers instantly. It cuts down on red tape and long waiting periods for wages, making the company more competitive and attractive.
Industry and government disbursements
Winston Churchill said, “Cometh the hour cometh the man.” There have been astronomical natural disasters across the globe recently. In a time of crisis, people need money fast. Governments can now quickly and effectively support citizens, relief organisations and emergency workers with funds via Visa Direct. “In Guatemala, for example, we supported the government to quickly respond to the needs of the population by sending subsidy funds directly to their debit cards,” says Maria.
Travel
Covid affected the travel industry extensively. People were stranded at airports that suddenly locked down, preventing entry or exit from countries. Travellers had to change their travel plans instantly, and travel agents had to reimburse cancelled packages. It traditionally takes three to five days for payments to clear. Customers needed their money immediately to pay for altered travel arrangements. It was a nightmare for millions of people. “Visa Direct helped travel agents to reimburse clients on the go. It increased the agent’s chances of retaining clients because it improved the customer experience for both merchants and cardholders,” says Maria.
The introduction of Visa Direct has truly revolutionised the payments industry. Listen to other use cases and applications of this simple, safe, fast way to pay anybody, anywhere, in the TruevoTalks podcast.
Speaking about making money flow. Truevo offers flexible payment solutions, for multiple channels, in over 150 countries. If you want to get started with faster payments, easy set-up, and complete security, speak to Truevo. We can’t wait to make money flow globally with you.
