Visa Inc is opening up its payment system to third party developers as it continues to look for new ways of making its services user-friendly. Through the initiative, the company plans to give banks, merchants, and tech firm’s access to its array products, services, and technology. With the opening up, developers should be able to access up to 150 Visa systems.
The opening up is a strategic U-turn Visa Inc having for years focused its attention on building a secure global payments network. The network has largely been closed off to everyone other than big banks that have also had to connect to the network in specific ways.
Developers will now be able to access a good chunk of Visa Inc services such as person to person payment capabilities, currency conversion, and account holder identification. Should a developer come up with a product that they want to be part of the Visa network they will be able to negotiate fees for the same.
Payment processing is becoming a big business seen by the number of companies that have already immersed themselves in the business. Apple Pay and Samsung Pay are some of the services that are starting to give Visa, a run for its money as the race for consumer’s dollars heats up.
Need For User Friendly Services
Current payment systems rely on credit cards to complete transactions but once people get used to using phones Visa Inc could be in trouble. That is because the giant payment system acts as the middleman with banks.
Coming up with user-friendly services that can reduce users reliance on things like Apple Pay and Stripe is all part of Visa’s long term play. By opening up the technology to outsiders it hopes to win more transactions by devices connected to the ‘internet of things.’
Visa Inc believes it can only grow from the current levels by letting third-party developers come up with exciting products and features for the network. Its network currently spans 200 countries from which it process over a billion transactions annually. The network processes over 65,000 transactions each second.