Visa is partnering with fintech company Affirm to introduce a new feature that will allow U.S. customers to use a single card for both debit transactions and buy now, pay later purchases, responding to the increasing demand for flexible payment options.
This feature will also be launched in the United Arab Emirates through a collaboration with Liv Bank, with plans to expand into Europe in the coming months, as announced on Tuesday. As e-commerce continues to grow, customers are prioritizing convenience and flexibility in their payment methods.
A Visa study revealed that 51% of card users want the ability to manage multiple accounts and funding sources through a single card. Typically, these customers need to carry a debit card for everyday purchases and a credit card for larger transactions. Visa’s “Flexible Credential” feature is currently available in Hong Kong, Japan, the Philippines, Singapore, Thailand, and Vietnam. Over the next year, Visa plans to partner with various digital and traditional banks to expand this feature, according to Mark Nelsen, Visa’s global head of consumer products.
The partnership with Affirm also highlights the increasing collaboration between fintech companies and traditional financial institutions. Though often seen as competitors, these collaborations can create new revenue streams for both parties. “We provide a platform for the fintechs to innovate at scale; that’s how we see ourselves,” said Nelsen. “It’s a little bit easier for the fintechs to get started with this. However, as the ecosystem matures, legacy banks will start to take advantage of it as well,” he added.
Affirm CEO Max Levchin mentioned that the company aims to provide a product that “seamlessly integrates debit and credit without late or hidden fees.” As of the end of September, Affirm already had 1.4 million active cardholders.
In a separate development, Bitcoin surged to a record high of over $81,000 on Monday, following Donald Trump’s victory and the election of pro-crypto candidates to Congress.