Visa and Western Union have entered into a new agreement in the sphere of cross-border payment transactions.
In fact, the mentioned companies are expanding the existing practice of interaction. As part of the expanded partnership, which was announced last Tuesday, March 5, Western Union customers will be able to transfer money to their loved ones on Visa cards and bank accounts in 40 countries.
The cooperation covers the issuance of cards, the integration of Western Union with Visa Direct, and the provision of additional services, including risky products. Furthermore, Western Union customers in some markets have the opportunity to receive prepaid cards from the mentioned partner of this company.
Firms are also currently working on creating disbursement programs for humanitarian organizations and governments to provide disaster relief. Moreover, this initiative provides support for payments in emergencies and humanitarian assistance. Besides, programs, that are at the stage of formation and exist in the format of a project awaiting practical implementation, apply to international pension payouts, domestic benefits, and compensation payments.
Chris Newkirk, global head of Visa’s commercial and money transfer solutions, says that people rely on financial transfer operations to send payments to their loved ones abroad. In this context, he noted that secure payments with additional convenience can be crucial for consumers. Also, according to him, urgency and accessibility are important factors in the provision of relevant services.
The integration of Western Union with Visa Direct was carried out in 2022 and 2019. As a result of this solution, customers in the United States and European countries can send and receive money directly to eligible Visa cardholders overseas.
Western Union also expanded its cooperation with MercadoPago, a Mexican company, last month. In this case, American and Canadian customers are allowed to send funds from the Western Union mobile app, its website, or one of its retail locations to MercadoPago wallet accounts in Mexico.
Last year, Western Union began cooperating with PaySend. In this case, consumers are offered an additional opportunity to pay directly to the card. As part of the cooperation between the two companies, Western Union customers can transfer money directly to Visa and Mastercard debit cards.
Currently, American e-commerce merchants are facing difficulties when trying to make transactions in international markets. In this case, the main problem is a higher percentage of unsuccessful payments when making cross-border financial operations compared to similar actions in the internal functional space. Disruptions in international markets are a significant factor affecting profits. Last year, according to media reports, American merchants faced sales losses of $3.8 billion amid problems with cross-border payment transactions.
In the United States, sellers operating globally say that the average failure rate in international payments is 11%. Also, more than 80% of them are interested in identifying the cause of the mentioned failures. This strive is evidence of the demand for reliable functional solutions related to cross-border payment transactions.
As we have reported earlier, Visa Completes Acquisition of Pismo.
