Data on the latest adoption rates for contactless transactions, tokenization, transit payments and secure remote commerce has been made available by Visa CEO Al Kelly — along with details of the revenue model to be used by Plaid, which Visa is to acquire for $5.3bn.
Kelly revealed the new adoption stats during the payments networks’ Q1 2020 earnings call.
“We have reached a point where one in every three card-present transactions that runs over our network is tap versus one in four a year ago this quarter,” Kelly said.
“This past year, we doubled the number of countries whose face-to-face transactions are at least two-thirds contactless.
“Transit continues to be a key user case and an important way to habituate tapping behaviour. In New York City, on the MTA, Visa crossed 2m taps in November from the beginning of the pilot and 3m in January.”
“We are currently pacing at 350,000 Visa taps a week on the MTA, and nearly one in every 10 transactions in the New York metro area is a tap-to-pay on a Visa card,” Kelly added.
“We also launched Africa’s first contactless transit system in Johannesburg this quarter, in addition to launches in Ho Chi Minh City as well as Taiwan, Sweden and Ukraine.
Click-to-pay
“In the e-commerce environment, click-to-pay — or what we once called secure remote commerce — seeks to streamline the digital payment experience across networks, offering greater security and improved sales.”
“You may recall we launched with a select number of merchants in October, and by the end of December more than 40 merchants had adopted the new click-to-pay solution,” Kelly explained.
“Now that the holiday season is over, we recently completed the migration of 5,500 US merchants to click-to-pay. We expect to complete the migration of the remainder of Visa Checkout merchants in the United States over the coming months.
“Additionally, all 50 million consumers who were already enrolled in Visa Checkout were automatically converted to click-to-pay.
Tokenization
“Globally, we continue to make progress on securing the ecosystem with tokens. Introduced in 2014, tokens have expanded into 107 countries, equating to 6bn tokenized transactions in 2019. We now have over 750 million tokens globally.”
“Collectively, we have secured merchant and partner commitments for tokenization in the e-com space that will add up to approximately $1tn in Visa payment volume,” Kelly said.
“We see Plaid is having the potential to deliver real value to Visa in multiple ways,” he also explained.
“Similar to us — we have a usage-based revenue model — pricing is structured on a pay-per-API call basis and varies by product depending on the type of financial data consumed by the customers at the fintech, which speaks to the power of their network. We are truly excited about the acquisition.”
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