FINTECH | Visa, GCash to enable card-funded QR payments
The feature is designed for everyday purchases, including meals at restaurants, purchases at weekend markets and transactions at tourist destinations, according to the companies.
GCash QR
Pinoy consumers will soon be able to use eligible Visa cards to fund QR payments through the GCash app, reducing the need to transfer money from bank accounts or top up their wallets before making purchases.
Visa and GCash announced the planned link-and-pay feature on Aug. 3 in Makati City, saying it will allow users to link eligible Visa cards to their GCash accounts and use them as a funding source for QR transactions at merchants that accept GCash.
Previously, GCash users who did not have enough wallet balance had to top up through linked bank accounts or transfer funds from other banks before completing a transaction. The new feature will allow users to select their linked Visa card as the funding source when making a QR payment.
The feature is designed for everyday purchases, including meals at restaurants, purchases at weekend markets and transactions at tourist destinations, according to the companies.
Visa said transactions funded by linked cards will be protected by Visa Payment Passkey, an authentication system based on Fast Identity Online (FIDO) standards. It allows users to authenticate payments using a device fingerprint, face recognition or PIN instead of passwords or SMS one-time passcodes.
Visa said biometric authentication can reduce fraud rates by up to 50% compared with SMS-based one-time passwords, citing its Visa Payment Passkey materials.
“Consumers increasingly expect flexibility in how they pay, and are looking for payment experiences that are simple, secure, and seamless. This exciting collaboration expands that flexibility for consumers, allowing consumers to use their Visa credentials across everyday digital payment journeys including QR payments. This takes us forward in making digital payments more accessible and convenient for everyone,” said Jeffrey Navarro, country manager for Visa Philippines.
“This new feature further enhances the GCash experience for millions of Filipinos, giving them greater freedom in how they pay and manage their funds while maintaining the experience they’ve come to expect from GCash. This partnership also reinforces our shared trust with Visa to expand financial inclusion and bring more Filipinos into the digital economy,” said Ren-Ren Reyes, president and CEO of G-Xchange Inc., the mobile wallet operator of GCash.
The companies cited Bangko Sentral ng Pilipinas data showing that digital transactions accounted for 57.4% of total monthly retail volume in the Philippines in 2023. They said card-funded QR payments could further support the shift toward digital payments by expanding the ways consumers can use cards, wallets and QR transactions.
