Visa's Local Partners Fill Cardless Gaps in Business Payments

Why It Matters

The partnership unlocks a large portion of B2B spend that previously bypassed card networks, strengthening Visa’s relevance to corporate treasuries and boosting high‑margin VAS revenue streams.

Key Takeaways

• Visa's BPSP lets buyers pay suppliers via card‑to‑account conversion.
• PingPong supports payments in 170 countries across 25 currencies.
• Service expands Visa's value‑added services to 30% of revenue.
• Enables corporate spend that previously bypassed card networks.

Pulse Analysis

Corporate payment teams have long wrestled with the "cardless gap"—transactions where a buyer prefers to use a commercial card but the supplier only accepts wires or local bank transfers. Visa’s Business Payment Solution Provider (BPSP) addresses this friction by acting as an intermediary that converts a Visa credit‑card charge into the supplier’s preferred payment method. By leveraging its extensive card network and partnering with fintech specialists, Visa can offer a seamless, secure experience that preserves the working‑capital advantages of card usage while respecting the supplier’s settlement preferences.

PingPong, one of three fintechs selected for Visa’s BPSP program, brings a robust infrastructure that spans roughly 170 countries and supports around 25 currencies. The fintech’s platform handles compliance, currency conversion, and settlement logistics, allowing a U.S.‑based multinational to pay a Chinese supplier with a Visa commercial card, then automatically receive the funds via a local bank transfer in yuan. This capability not only accelerates invoice processing but also improves cash‑flow visibility for both parties, a critical factor for fast‑growing startups and established enterprises alike.

For Visa, the BPSP initiative is a strategic lever to grow its value‑added services, which now represent about 30% of total revenue and are delivering double‑digit quarterly growth. Investors see VAS as a higher‑margin, less‑cyclical revenue stream that can offset traditional interchange pressure. As more corporates adopt card‑to‑account solutions, Visa’s partnership ecosystem—spanning PingPong, Thunes and others—positions the network as a central hub for the evolving open‑banking and fintech landscape, reinforcing its long‑term earnings outlook.