As to Visa's strategy on cross-border (reminder Visa makes over $6bn a year in revenue from FX):
“Visa should be the pipes and plumbing. We provide the core capabilities, at scale and consistently, and then let clients build on top of us.”
Mark Pettit, Executive Director of Innovation & Strategy and Programs, Visa
Each of the plays above adds another string to Visa's bow. We covered the Earthport deal here so take Currencycloud for example:
As our table above shows, the deals above are adding speed, transparency and new capabilities. This is building the plumbing and Visa's Mark Pettit who led the Currencycloud deal said to me, there is a lot to come from Visa in the cross-border space so stay tuned.
- The current working of the card rails locks the FX rate at a different time to when the transaction actually occurs. This can cause lots of issues from a lack of customer transparency to reduced capabilities for the card issuer.
- The Currencycloud partnership allows the FX rate to be set real time removing this time delay. What Visa's customers then do with this capability is up to them.