Visa Inc., has announced the launch of Person-to-Person (P2P) payments in Sri Lanka, enabling consumers to make and receive payments digitally, person-to-person in real time.
In the post-pandemic world, digital transactions are growing through multiple platforms, expected to be worth $5,317 million in 2022. Cashless service delivery levels are transformed by enabling real-time digital access across payment gateways and smart devices.
In line with the regulator’s efforts to boost digital transactions, Visa’s new service enables card-to-card transactions with speed, security and user convenience. The P2P facility allows consumers to use Visa Direct and make payments directly to another Visa card using the card’s credentials. This helps them manage digital money transfers safely and efficiently between two parties i.e. two consumers in real time. It also provides greater mobility and access to cashless payments in various segments.
Avanthi Colombage, Country Director for Visa Sri Lanka and the Maldives, said, “Visa is always striving to make moving money easier and more transparent, as a network that works for everyone. We are delighted to announce that we now have the technology in Sri Lanka to enable our Sri Lankan Visa cardholders to make domestic person-to-person (P2P) payments from account to account using their Visa credentials.
“The broad use case potential with this Visa Direct solution could enable and improve bank-to-bank transfers, credit card bill payments, use on digital wallets, social media transfers and massive fund disbursements in the near future. We believe this will truly transform the way the people of Sri Lanka pay and get paid,” she added.
As more and more online services gain momentum, Visa believes that enabling real-time payments on digital platforms will augment our services by meeting our customers’ expectations. Real-time payments provide critical support for consumers to quickly access their funds and could be a game-changer for the market. Moreover, it supports the payment ecosystem by encouraging third-party companies to offer innovative products to customers in the future.
Through this unique platform offered by Visa, consumers can “pull” funds through their cards in the same way they make payments and “push” those funds to another card, via P2P payment rails. Once verified, the user can select a friend whose money should be received or to whom the money should be sent. A payment request is sent and once approved, it is followed by an efficient and transparent transfer of funds.
While Sri Lankan banks can now activate the service for their customers through their banking apps, online banking, ATMs or branch offices, fintechs can also activate the service for a wide range of consumers through the fintech apps.
Given the post-pandemic growth of digital transactions, Visa believes that P2P transactions have the potential to exponentially grow transfers between individuals due to the inherent ease of transferring funds from one Visa ID to another. in real time. This will be in addition to the growing P2M (Person to Merchant) payments that consumers are accustomed to via Visa QR and other form factors.
Real-time P2P payments are poised to become a personal payment option, especially for those who use their smart devices to make regular purchases.