Visa Launches a Platform for Commercial Payments
B2B payments are central in the global payments landscape, and Visa has introduced a platform aimed at connecting major players. The company highlighted its Commercial Integrated Partners program as an ecosystem that banks can use to offer enterprise clients a variety of services.
Through this program, banks can integrate products from fintechs into their business clients’ enterprise resource planning (ERP) software via Visa’s APIs. This creates a plug-and-play solution focused on innovation and enhancing the customer experience for all parties involved.
Hugh Thomas on the Commercial Focus
Hugh Thomas, Lead Commercial and Enterprise Analyst at Javelin Strategy & Research, commented, “This is a notable announcement. The most similar Mastercard initiative would be their Accelerate program which encompasses solutions such as Start Path and Fintech Express. While there are some differences, the key distinction is the emphasis on commercial payments.”
Thomas added, “Mastercard’s programs range from blockchain to consumer-focused offerings like P2P payments, whereas this Visa program is exclusively for the commercial sector. This approach seems sensible since the ecosystem for commercial payments has fewer and more manageable potential partners, with distinct forces driving change compared to the consumer world.”
Visa’s Partnership with Car IQ
A practical example of how this platform can be used is through Visa’s partnership with fleet technology provider Car IQ. This software enables vehicles to become payment credentials, mitigating the risks associated with physical cards in fleet management.
Financial institutions could offer Car IQ software to their business clients, allowing them to make virtual card payments using a mobile app at fuel stations. This integration can save companies up to 18-24 months of due diligence, integration work, and project management.
Security and Certification
While the benefits are significant, financial institutions may have concerns about data security when sharing information with multiple parties. Following issues at fintech Synapse, Visa stated that all fintech partners on the Commercial Integrated Partners platform are pre-evaluated and already integrated with the company.
Thomas noted, “The certification aspect is noteworthy. It implies Visa has the internal expertise to both understand its products and certify their use in others’ systems.” However, he also pointed out, “While it’s a good idea to streamline product launches, ensuring that the certified solutions deliver on their promises remains crucial.”
This initiative reflects Visa’s commitment to growing the card network-driven commercial ecosystem by playing a more active role in certifying solutions.
