Visa Moves in On PayPal’s Turf with Payment Service

By  |  Wednesday, March 16, 2011 at 9:12 pm

PayPal is about to get some competition from one of its own partners as Visa announced a new personal payments service on Wednesday. The offering would allow anyone from a participating bank to send payments directly to any Visa account, whether it be a credit, debit, or prepay card.

Visa said it needed to make some changes to its backend to allow its partners to accept incoming payments, as well as changes to the network itself. The creditor has partnered with CashEdge and Fiserv to handle the person-to-person transactions — Visa itself would not be directly involved.

To send a payment, the payer would need to know the payee’s 16-digit Visa account number, e-mail address, or phone number. Once sent, the payment would show up in the users account. This could be used in a number of ways — for example, making sure your child at college has money on his prepaid Visa, or that friend paying you back for that item you charged to your Visa credit card, etc.

Visa says the payment service should be available from participating financial institutions beginning in the second half of this year.

 
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3 Comments For This Post

  1. @TechClicker Says:

    Until Visa's service accepts payments from other credit card companies like Mastercard and American Express, Paypal doesn't really have anything to worry about.

  2. chargin Says:

    But wont this open up scams?
    "Send me your cedit card number oh and that little 3 digit number on the back of your card "
    Ok now I have your name and CC details, I can now charge things to your card.

  3. Widesmiler Says:

    Chargin – they accept payment to a phone number or email too.

    Are there fees involved?