Visa has announced that 2019 will be the first year where the volume of payments made by card will reach over $1 trn, becoming the first card scheme to hit this level.

During a roundtable at the annual Sibos conference, Visa revealed that it’s card solutions will be the first ones to reach the milestone, but that the focus is on further growth.

Kevin Phalen, SVP, global head of Visa Business Solutions, said: “This will be the first year we hit over $1 trn in volume in our card-based solutions. That is an exciting announcement we’ve said to the marketplace – it’s the first time a card scheme has hit this level.

“But the reality is that card-based payments in the community space only represent, depending on the market, 3-5% of payments within that specific market. So, the other 95% of payments are being done utilising other types of solutions.”

However, as the company’s clients have gained an increased focus on other forms of payments and friction across global payments, Visa has had to start looking at non-card-based payments.

Phalen said: “If the commercial payment infrastructure in its totality is roughly $120-130 trn in payments, we believe that card-based payments probably can grow to $5-20 trn. But that other $100 trn is being done today through ACH, wire, checks, cash and the likes.”

As a response, Visa is now focusing on capturing that opportunity, through the launch of Visa B2B Connect network, a cross border payment network aiming to facilitate quick and secure processing of corporate cross-border payments globally. The aim is to reach 100 countries with the network by next year.

B2B Connect, which is completely API-driven, aims to incorporate a future-proof model, Phalen noted, as the level of data today and in the future will continue to expand. It is also built to handle global transactions, even across so-called tier-1 to tier-4 financial institutions.

“That’s somewhat of the sweet spot of where we play,” Bill Sheley, SVP, global head of Push Payments, noted. “Today, many of those institutions are trying to find easier ways to high-value, cross border payments, and connecting into B2B Connect is not only very relevant to them, but there is urgency in which to do it.”

Sunniva Kolostyak
by Sunniva Kolostyak
FinTech Reporter at IBS Intelligence
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