Visa has acquired control of Earthport, a company that provides cross-border payment services to banks, money transfer service providers and businesses via the world’s largest independent ACH network.
Currently, Visa enables payments to be sent to or from Visa cards. The acquisition will make it possible for Visa clients to enable individuals, businesses and governments to utilize Visa to send and/or receive money through bank accounts around the world. With the acquisition of Earthport, Visa expects to be able to reach the vast majority of the world’s banked population and allow them to easily, quickly and securely move money worldwide.
Nearly $80 trillion (US) of money is sent via a wire transfer or bank account globally today, but the process is harder and more complex than it should be. Money can take days to arrive because of outdated, inefficient and costly methods.
This transaction can solve for many use cases including payroll and international person-to-person and business-to-business remittances. Take the example of a global marketplace that employs contractors globally who have to get paid in their local currencies. Today, that company may be paying its workforce using inefficient, expensive wire transfers that can take days to arrive. With the combined capabilities of Visa and Earthport, Visa can be the single network for these payments, helping to pay contractors and employees around the world, quickly and safely.
“Visa is modernizing the way we move money by making it quicker, safer and easier to pay and be paid than ever before,” said Bill Sheley, head of global push payments, Visa. “The acquisition of Earthport unleashes the power of Visa by taking us ‘beyond the card,’ empowering us to enable our clients to make payments through bank accounts around the world.”
Earthport’s technology will allow Visa to further expand and scale Visa Direct’s rapidly growing portfolio of use cases, including funds disbursements, peer-to-peer payments, cross border payments, marketplace payouts, and bill payments. Over the last 12 months, Visa Direct’s transaction count growth has continued to be over 100% – showing the demand for faster, smarter money movement among consumers and businesses around the world.