Categories: HmmmIn DepthNewsNews

Visa’s View Of A B2B Future

What do you do when you’re the largest payments company on the planet and every aspect of payments is undergoing huge global change? You try and identify the biggest and most threatening of these changes and try to either partner with it or do what it’s doing in a bigger way.

That’s where Visa finds itself today and one of its senior new technologies execs—Bill Gajda, whose official title is Visa’s global head of strategic partnerships—spent some of this week exploring possible payments future and how Visa could dominate them all, especially in B2B.

“I met yesterday with our head of commercial payments and, a week before that, with Prepaid. And why that’s interesting is because if we think about government disbursements, not just here in the U.S. but globally, one of the big focuses for our Prepaid Group is to replace cash disbursements or check disbursements with Visa Prepaid and that’s true in the United States, whether it’s health disbursements, welfare disbursements, etcetera, etcetera, and in many emerging markets, where there is a very high percentage of the GDP (that) are international or government disbursements,” Gajda said. “So this is a huge driver of our prepaid program. It’s how we can take the risk, the complexity, the fraud, the grey market out of these disbursements using our network and Visa Prepaid. That’s a program that is very fast growing. We’ve literally got hundreds of implementations of those disbursement programs and that will continue to grow.”

But when the conversation turns to corporate enterprises, the focus shifts. “On the commercial side, this is more focused on literal B2B payments. If we think about the invoicing process and what that means, the number of checks that are still floating around, electronic bank transfers, paper invoices, our promotional strategy is all around how can we again use the Visa network in commercial visa accounts to enable this business of business transaction, and so that’s their focus,” he said. “I had the discussion with (Visa’s head of commercial payments) about ‘What about these crypto currencies?’ I would say that I don’t see these cryptocurrencies as currencies representing a threat to the established networks in themselves, because today at least they are very complex. The regulatory environment is very uncertain, right? You’ve really got to be a sophisticated user to understand how these cryptocurrencies work. They are not for the layman.

“But if you have abstracted the currency elements, the notion of a very transparent, low cost, algorithmically-based processing capability is something we should all be looking at. We know generally that the physical network that we built over 50 years ago, new technologies are going to allow us to replicate that reliability with some cloud-based capabilities, with some of these potentially these algorithmic-based capabilities,” he said. “So our Commercial Group is really interested in how these crypto networks work on the currencies. We are going to work with them as part of our Innovation Group just to better understand what these processing capabilities are. Can they augment what we do? I think we are really (in the) early days. We are starting out at the beginning of these crypto networks. But I think it’s just an example of how Visa and the other networks and the issuers are going to have to watch all of these spaces very carefully, because it’s all changing very quickly.”

(Click here to read about Bajda’s views on non B2B payments issues, from the same conversation.)

Get our hottest stories delivered to your inbox.

Sign up for the PYMNTS.com Newsletter to get updates on top stories and viral hits.

——————————

New PYMNTS Report: Preventing Financial Crimes Playbook – July 2020

Call it the great tug-of-war. Fraudsters are teaming up to form elaborate rings that work in sync to launch account takeovers. Chris Tremont, EVP at Radius Bank, tells PYMNTS that financial institutions (FIs) can beat such highly organized fraudsters at their own game. In the July 2020 Preventing Financial Crimes Playbook, Tremont lays out how.

Recent Posts

Agora Services Debuts New Tools For SMB Banking

Challenger bank Agora Services wants to address challenges with banking for small businesses with a new solution called Agora SMB,…

2 hours ago

Google Almost Done With Transition To SAP Ariba Network

Google's transition to SAP Ariba's cloud-based services has a completion date set for Aug. 24 after multiple waves that began…

2 hours ago

Fed Moves Ahead With FedNow Despite Objections

Not everyone favors the Federal Reserve Board’s launch of its settlement service designed to eliminate the three-day check clearing and…

2 hours ago

Pelosi, Mnuchin Call For Reopening Stimulus Talks

Weeks of failed negotiations on pandemic-related aid has led to House Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin, representing…

3 hours ago

Bitcoin Daily: S. Korea To Use Blockchain To Collect Highway Tolls; Polish Financial Watchdog Warns Of Fake Crypto Scams

South Korean highways could see blockchain-based toll booths before the end of the year, according to a report from Crypto…

3 hours ago

CHAMPS Group Purchasing Works With Procurement Partners On Smoother P2P Services

CHAMPS Group Purchasing is partnering with Procurement Partners, which works in procure-to-pay (P2P) solutions, to provide a new service for…

3 hours ago