So Visa doesn’t have the full view of bank plans.. but neither do the banks have full view of Visa’s
My guess is that the banks don’t know that Visa also is making plans for tokens.. in a new Super TSM model. My guess on Visa’s objectives
- Bet against bank effort
- Carrot of lower interchange by reclassifying compliant tokenized cards within wallets as Card Present.
- Confuse everything
- Focus on digital and getting Amazon/Apple converted
Crazy times for anyone holding a card on file. Today’s WSJ article may be referencing this “new lane”.
My view is that this is a much better idea than VBV.. (links below), but in the VBV model the issuer owned the consumer registration and validation. Could V do this from a merchant (ie CYBS, AMZN, AAPL) side? Get them to part with all of their card numbers on file and substitute with Visa tokens.. then given them card present rates and a liability shift? Wow.. that would take off quickly… This would also enable V.me in a brand new way… particularly if the CONSUMER registered their card or validated their token.
This is pure conjecture… but if this were the case, big issuers would go ballistic. Which is perhaps why it is in the silent planning stages. Visa just proved it has more tools in the shed than I initially thought. This is an example of making their network merchant friendly.