SHOPPING online could continue to change in a major way for millions of US consumers in the coming months and years.
Top payments technology companies are continuously working to streamline processes and move toward a wholly digital landscape.
Visa is a leader in those efforts.
CEO Ryan McInerney confirmed on a Thursday earnings call that the company is continuing the work to overhaul the “guest checkout” area when it comes to e-commerce transactions.
McInerney specifically told investors that Visa had been working with “acquirers and payment facilitators to ultimately eliminate the guest checkout that occurs today.”
That has led to at least 96% of transactions at Visa’s top 25 sellers to have a streamlined process that requires “only a simple click or biometric authentication” when buying an item, according to the CEO.
He added that these transactions “do not require a burdensome and error-prone form-filling” space that most shoppers see through a variety of sellers when making online purchases.
A simple biometric scan or one-click pay option is very similar to processes already offered through Apple Pay and platforms like Shop.
Visa is seemingly working to continue this type of payment approach when it comes to all purchases associated with its cards.
The company is even working to move further away from the use of physical credit and debit card numbers when making online purchases.
McInerney emphasized that Visa now has more than 17.5 billion “tokens” globally used by customers and accepted by merchants.
A Visa token is a unique, secure digital identifier that works to replace a 16-digit card number, otherwise known as a Primary Account Number (PAN), when digital transactions are made.
This prevents actual account details from being exposed as it’s tied to a specific device or merchant, reducing the risk of fraudulent activity.
They’re being used now through Americans’ mobile wallets and stored in apps and websites for payments, managed by the Visa Token Service (VTS).
The VTS helps ensure that a token is useless if taken by a bad actor.
“We continue to make progress on the tokenization of e-commerce transactions to our ultimate goal of fully replacing card-centric PAN technology, further improving Visa’s competitive positioning against cash, check, and legacy forms of digital payment,” McInerney said on the call.
What Banks Offer Visa and Mastercard Credit Cards?
- Chase
- Capital One
- Bank of America
- Citi Bank
- Wells Fargo
- TD Bank (Only Visa cards)
E-COMMERCE EXPLOSION
Overall, consumers with Visa can expect to see even more efficiency and security with online shopping as e-commerce continues to boom.
According to recent data posted on Substack from an economist and senior fellow at Brookings Institution, Robin J Brooks, e-commerce is toppling other forms of retail in 2026.
“The pandemic forced many households, which had previously resisted the shift to online buying, to switch to the internet, and they’ve never gone back,” Brooks wrote.
Before 2020, e-commerce only accounted for around “20% of core retail sales, but now stands at 30%.”
“Big box stores like Walmart did well during the initial stages of the pandemic, but are now ceding ground to e-commerce.”
That means more protections are needed along with improvements to the online payment process, which companies like Visa are spearheading.
CARD CHAOS
Visa also made waves in November when it reached a settlement agreement with Mastercard and US merchants.
“After more than 20 years of litigation, Visa and Mastercard have reached a proposed settlement with U.S. merchants of all sizes that would provide meaningful relief, more flexibility, and options to control how they accept payments from their customers,” Visa said in a statement.
Basically, the deal lets retailers have more freedom in deciding which types of credit cards they will accept and what surcharges could be added.
It could potentially limit what kinds of Visa cards customers can use at their favorite stores when buying items this year and beyond.
For example, a store that decides to accept one type of Visa card wouldn’t be required to then accept all Visa cards, which is the current situation.
They could also deny specific rewards cards that charge them higher fees.
Millions of Americans are also bracing this year as a credit card “Competition” law looms.
There’s even a possibility Americans could face $1,200 annual dining surcharges this year as Visa sounds the alarm.
