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Visa Initiative to Invest $100 Million in Generative AI Ventures

Visa Initiative to Invest $100 Million in Generative AI Ventures

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In a move set to reshape the landscape of commerce and payments, Visa has declared its intention to invest $100 million in companies at the forefront of developing generative AI technologies. 

Visa Initiative to Invest $100 Million in Generative AI Ventures
Image Source: ffnews.com

The investment initiative will be executed through Visa Ventures, the global corporate investment arm with a history spanning 16 years. Visa, a trailblazer in AI applications for payments since 1993, is now focusing its attention on the burgeoning field of generative AI. This subset of artificial intelligence is characterized by its ability to generate text, images, or other content based on extensive datasets and textual prompts.

Jack Forestell, Chief Product and Strategy Officer of Visa emphasized the profound impact generative AI will have, stating, “While much of generative AI so far has been focused on tasks and content creation, this technology will soon not only reshape how we live and work, but it will also meaningfully change commerce in ways we need to understand.”

David Rolf, Head of Visa Ventures, underscored the transformative potential of generative AI, calling it “one of the most transformative technologies of our time.” He noted that Visa Ventures possesses flexibility in terms of the number and size of investments, expressing an interest in making a range of smaller investments in the early stages of the industry.

Rolf outlined the criteria for potential investments, specifying that Visa is seeking to support companies applying generative AI to address real challenges in commerce, payments, and fintech. This includes B2B processes around payments and infrastructure with the potential to significantly impact commerce. Rolf emphasized that Visa is open to engaging with companies at various levels of the technology stack, from data organization for generative AI to end-user experiences.

Also Read: Arc Raises $70 Million to Build the Tesla of Boats

Furthermore, responsible AI use aligning with Visa’s policies is a key consideration. Rolf stated, “One of our key considerations is how well these companies are practicing responsible use of AI, in line with Visa’s policies.”

This announcement follows Visa’s strategic move to appoint Marie-Elise Droga as the head of fintech, who noted that her team frequently collaborates with the Visa Ventures team. This collaboration serves as a scouting engine, identifying innovative startups that align with Visa’s vision for the future of commerce and payments. As Visa Ventures embarks on this $100 million investment journey, the landscape of generative AI technologies in commerce and payments is poised for significant transformation.

Paytm Launches First Card; Ties-up with Citi Bank to Retain its Old Customers

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Apple recently launched its credit card for its iOS users, and amid the rising competition, from Google and the other digital wallet providing companies, India’s largest digital wallet Paytm is now launching its first credit card named First Card. The company announced on Tuesday that it will be launching its first credit card for its wallet users that too with 1 per cent ‘universal unlimited’ cash back on every purchase.

Paytm First Card
Image Source: inc42.com

The company has been struggling with maintaining its position in the Indian eCommerce market. And, the company has been trying new strategies to deal with the rising competition. It even launched its own eCommerce platform, Paytm Mall, that too providing huge cash backs for the users. But still, the threats from its rivals are only growing.

“We are delighted to partner with Citi to launch the Paytm First Card. Our new offering is designed to bring the utmost flexibility to our customers in their digital payment options and will help spur large-ticket cashless payments. We are confident of getting a very good response from our customers.” said Vijay Shekhar Sharma, Chairman and CEO – One97 Communications, the parent of Paytm.

Though there are only 50 million people, who actually have credit cards and use for purchases in India, Paytm hopes to make 25 million of Indians to avail its new credit card service. To launch the credit card, the company has partnered with the global payments company Citi Bank. The company will charge an annual fee of INR 500 to the First Card users, and if the spendings of the users will go above INR 50000 per year, the fee will be waved off for those users. The users will also be provided with the offers on dining, shopping, and travel on the platforms having tie-up with Citi Bank.

The customers can apply for the credit card directly through the Paytm app, and the Paytm account passbook will reflect the offers from both Paytm and Citi Bank for the credit card holders. The users with minimum INR 10000 expenditure in a month will be able to avail promo codes of worth INR 10000. The users of First Card will also get the option to pay for goods in easy instalments.

The Citi Bank First card is powered by Visa and is valid internationally. Noticeably, Paytm had just joined its hands with Visa to launch its debit cards last week. The partnership between Citi Bank and Paytm has a long history, and this time, it is an initiative taken to support Paytm’s new subscription-based loyalty program ‘Paytm First’ and retain its users who have been shifting to the other payment apps.