Card payment giant Visa has announced a partnership with TransferWise, which will facilitate the speedy growth of the multicurrency debit cards of TransferWise.
The partnership will Visa Cloud Connect, an effective way for companies to securely connect VisaNet, Visa’s global processing network.
The Cloud Connect platform will help expand TransferWise’s debit cards to the U.S., the U.K, the Middle East, the Caribbean, and Latin America, Europe, and the Asia Pacific.
A massive reduction in cost
Based on the official announcement, the partnership will help TransferWise cut costs on local connectivity infrastructure.
Visa’s Cloud Connect was established to enable fintech fiems around the world to effectively integrate the VisaNet processing network through the cloud. TransferWise boasts about $6 billion worth of cross-border transactions every month, with over 10 million customers on the platform.
With the TransferWise multi-currency account, businesses and consumers can hold and convert up to 55 currencies at the normal exchange rate.
Also, with the card, users can withdraw or spend directly from any currency balance of their choice.
Enabling efficiency in the industry
TransferWise may have required investing heavily in specialized payment hardware, telecommunications infrastructure, and local data if it wants to expand its operations into new markets. But with the partnership, all those investments are not necessary, since Visa will be providing the right platform for such expansion.
The company can make use of Visa Cloud Connect to establish a secure connection that eliminates costly local connectivity.
Chief product officer and executive vice president of Visa Jack Forestell stated that the card payment giant was first approached by TransferWise last year. He said the company wanted Visa to use its cloud to enable the global rollout of its debit card program.
Eliminating cross border issues in international finance
He said the proposition was an exciting one because it’s in line with Visa’s goal to help fintech companies scale up the ladder quickly by enabling innovative services.
Co-founder and Chief Executive Officer of TransferWise Kristo Käärmann also commented on the partnership. According to him, the company has been very active to ensure that there are no cross borders in the world’s financial network.