Looking at payment network products/capabilities: VisaPay‍

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Visa Pay is designed to allow consumers to use their local digital wallets and account-to-account (A2A) payment apps to make NFC payments at Visa-accepting merchants around the world. The solution leverages the network provided Host Card Emulation (HCE) SDK. Potentially, other Visa transaction initiation methods may be used (e.g., in-app, EMV QR,Visa Direct, etc.). This is delivered as an addition to the original localdigital wallet payment methods like scanning a QR or A2A transfers.

An example: a user of Line Pay (Taiwan) enables the NFC functionality and travels to another country. When paying at a local merchant(not accepting Line Pay), they open their Line Pay app and tap their phone onthe terminal, performing a Visa Pay NFC transaction.

Onboarding works as follows: the local digital wallet is onboarded as a “normal” Visa issuer with its own dedicated BIN. For each local digital wallet account, in which the consumer activated the “Visa Pay” functionality, the issuer (Wallet-as-Issuer) will obtain a Visa Virtual Card Number (VCN) that is used to initiate in-store NFC transactions. Currently, the VCN is not shown to the user. Potentially, it may be shown and used to perform e-Commerce CNP transactions.

The normal local digital wallet funding sources can be used.Visa does not require wallet users to hold a Visa card. The in-store Visa Pay transaction is made using the VCN (and the local digital wallet balance) after/during which the local digital wallet may initiate an account funding transaction (AFT) with the actual funding source (e.g., American Express, A2A, etc.).

Because local digital wallets often operate on low processing cost,Visa, most likely, has a custom interchange tier. Processing fees andother fees are likely negotiated with the Wallet (-as-Issuer).

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