Fintechs Across The Asia Pacific Can Go Global Using The Visa-Marqeta Alliance
A fintech can now easily get itself accepted internationally – by morphing account balances into digital credentials.
Visa and Marqeta have partnered to offer fintechs in Australia, Hong Kong, Japan, Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand, and Vietnam a new way to themselves internationally accepted.
Fintechs in these countries can now turn their user account balances into digital cards. These would be accepted wherever Visa is and where the Marqeta platform is certified.
The Visa-Marqeta partnership will be particularly relevant in Asia. The region has 4.3 billion people, 90 digital wallets, and 150 pending or issued digital banking licenses.
Therefore, fintechs and e-wallets in the region will benefit from the Visa Marqeta tie-up and quickly acquire a global footprint across different markets, merchants and endpoints. Moreover, this will boost digital commerce in these Asian markets.
“We’re moving into the next step of payments enablement,” said Matt Dill, Visa’s global head of strategic partnerships and venture.
Visa-Marqeta: Digital credentials will boost the flow of digital transactions
According to Dill, the Visa-Marqeta partnership will advance digital payments, both inbound and outbound, across various markets and applications. Underserved populations will, therefore, benefit from the acceptance of their digital credentials beyond domestic boundaries.
Also, digital credentials will be particularly relevant in countries where traditional card networks are not workable, due to whatever reasons.
Any fintech platform for e-wallet will jump at the opportunity to turn user account balances into globally accepted card credentials. Moreover, this facility will assume further importance as consumption models change and expand.
Credit will benefit too from the Visa-Marqeta tie-up
New consumption scenarios will raise new demands for credit. Hence, these fintechs would be devising new means for applying for and paying down credit facilities. Ultimately, fintechs may have to aggregate both the purchase and the financing of consumables in Asian markets.
“A lot of these companies started by building a domestic [use case], where cards or other types of digital credentials were underpenetrated,” says Dill. “By associating themselves with a global platform, they can really extend their revenue reach.”
In May 2019, Marqeta completed a $260 million Series E fundraise, as its modern card issuing platform took on global scale. The funding round valued Marqueta at nearly $2 billion. “We are in the midst of a transformation in card issuing around the globe,” said Jason Gardner, founder, and CEO of Marqeta. “When today’s innovators are in need of modern payment solutions, they aren’t turning to banks as their primary issuers anymore and want a platform built for their needs.”
[Related Story: Revolut Taps Visa to Expand Its Global Market Reach ]
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