V.Me by Visa – an online alternative to Paypal

Information verified correct on October 25th, 2016
Visa V.me

Visa has launched their new V.me service allowing shoppers to use a username and password instead of your credit card details when shopping online.

Aussies love online shopping with more and more users connecting to the Internet to find cheaper deals. However, the process can mean signing up and registering for a number of retailer websites and entering your credit card information numerous times.

Paypal provides a simple solution to this, allowing you to keep all your financial information in a secure online platform. But following the trend of opening digital wallets, V.me by Visa is the latest one to jump aboard.

Competing with the likes of PayPal and MasterCard, Visa is now fighting for a share in the growing consumer online shopping segment.

The company approached 40 financial institutions to be partners for their launch, including the big four, but only three agreed when it was publicly announced on Tuesday 9 July 2013. No one couldn’t help but notice that the Commonwealth Bank of Australia (CBA) was not on their list, possibly due to the fact that CBA already operates its own popular digital wallet, Kaching.

And none could be forgiven for thinking ‘wait a second, I already have an account where I can type a username and password to shop online’. The Visa V.me service works very much like PayPal where users can type in login details to send and receive money without the need to share financial information. The login details are then linked to the user’s chosen credit or debit card and its bank account as well as address details for shipping – leaving people to ask, what’s new? What sets V.me apart from PayPal is that you can’t store funds in your V.me account as transactions are instantly transferred between accounts, unlike PayPal. As well, it is the number of affiliates or partners that both companies have. But when Visa has fully rolled out V.me by Christmas, it is estimated that Visa could surpass PayPal in partners.

V.me vs paypal

According to Visa executives, the service will be available in Australia before the Christmas period, so Aussies wanting to sign up can do their Christmas shopping online. V.me has already been introduced in the United States last year. It is to be compatible with all major credit cards including its rival, MasterCard but cannot be directly linked to a savings account without a linked debit card. The same applies to MasterCard’s MasterPass but with Paypal, you can link your account with a savings account even without a debit card linked to it, as long as you can verify the account.

Many banks were already aware of the V.me launch, with NAB’s executive General Manager of Digital and Direct Banking, Antony Cahill stating that the bank would trial both MasterCard and Visa digital wallet services. Many banks will be launching, if they haven’t already, their own version of a digital wallet. The free digital wallet is also offered through the customer’s bank or financial institution.

Stats from the Reserve Bank of Australia state that AMEX and Diners club transactions attract surcharges of around 3% and Visa and Mastercard about 2%. However, Visa has become the first company to ban Australian retailers from stacking on the fees, restricting surcharges to as little as one percent. For an item that costs about $200, it could be a difference of $2 in surcharges.

Features of a V.me by Visa account

  • You can buy securely. Pay on any website where V.me is accepted and you don’t have to re-enter your checkout information. You can store one or more payment cards and shipping addresses in your V.me account, as well as enjoy the same rewards you currently get when you use your card.
  • You can sell securely from your site. V.me allows retailers to offer their customers a secure, reliable checkout experience from whatever platform their using. Multiple layers of security, including fraud-monitoring systems to their payment information safe.
  • Integrate it into your site. Online merchants can accept payments by embedding HTML and JavaScript tags. V.me accepts MasterCard, Discover and American Express and works with the seller’s existing merchant account provider. All you need to a V.me developer account and tags will be given to you.

Who’s already signed up for V.Me ?

Retailers that have already jumped onto this payments trend. JB Hi-Fi, Cotton On, City Beach and Lorna Jane have also signed up.

Information on Visa Credit Cards

Shirley Liu

Shirley is a personal finance journalist for finder.com.au. She is passionate about educating readers about home loans and helping users navigate the area to find the best deal for their financial situation.

Was this content helpful to you? No  Yes

Related Posts

Ask a Question

You are about to post a question on finder.com.au

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Disclaimer: At finder.com.au we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to the finder.com.au privacy policy, receive follow up emails related to finder.com.au and to create a user account where further replies to your questions will be sent.

Credit Cards Comparison

Rates last updated October 25th, 2016
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Enjoy a 0% p.a. balance transfer offer for 18 months and also earn 2 bonus Velocity Points in the first 3 months on everyday spend.
20.74% p.a. 0% p.a. for 18 months $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
ME Bank frank Credit Card
Enjoy a low and consistent interest rate on purchases and cash advances, combined with no annual fee.
11.99% p.a. $0 p.a. Go to site More info
HSBC Platinum Credit Card
Receive a full annual fee refund and save $149 if you meet the $6,000 spend requirement. Enjoy a balance transfer offer and platinum card benefits such as complimentary insurances and concierge services.
19.99% p.a. 0% p.a. for 15 months $149 p.a. Go to site More info
NAB Low Rate Credit Card
The NAB Low Rate Card offers 0% p.a. on purchases and balance transfers for 15 months. This card also comes with a low annual fee.
0% p.a. for 15 months (reverts to 13.99% p.a.) 0% p.a. for 15 months with a one off 3% balance transfer fee $59 p.a. Go to site More info

* The credit card offers compared on this page are chosen from a range of credit cards CreditCardFinder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.

Ask a question