Innovating Cash Deposit Capabilities Across Europe with Visa Direct

By Nicky Alexander

Access to 24/7, on-demand banking services is defining the next generation of money movement. As consumer behaviors and expectations change due to the digitisation of banking, a shift is occurring around the evolving economics of cash handling.

Cash use is declining across the UK and Europe, while the costs associated with handling cash for banks are increasing. As a result, nearly 5,000 bank branches have closed since 2015 in the UK alone [1]. This trend is expected to continue—limiting customer access to traditional cash services, including cash deposits. But there is still a critical, everyday need for people and businesses to deposit cash conveniently and securely through physical touchpoints. Also in many European countries, such as Italy, Spain, and Greece, cash is still commonly used.

Visa Direct is enabling a new cash deposit capability, providing a necessary service that benefits consumers, retailers, issuers, and acquirers.

Visa Direct Cash Deposits: Meeting a critical need for consumers

As bank branches close across Europe, cash deposits enabled by Visa Direct can offer fast, quality cash services for consumer and commercial Debit card holders at non-bank locations. Through this solution, retailers in Europe can operate a domestic cash deposit service in store at POS or at an ATM that earns them revenue, while giving banks a more cost-effective way to offer cash deposit services.

People have long been withdrawing cash as part of their transactions at convenience stores, supermarkets, gas stations, and other retailers. Now they can deposit cash at the same retailers, thanks to services enabled by Visa Direct. Consumers and businesses gain access to cash services at more convenient locations, and banks gain a channel for deposits.

Proximity to cash services isn’t the only benefit. Retailers are often open longer than a typical bank branch, extending the opportunity for consumers to deposit cash in order to pay a bill or meet another financial deadline. When making cash deposits, consumers associate the Visa brand with security and trust—giving them confidence that their money could securely hit their bank account before they even leave the store. A January 2021 survey conducted by Visa identified double digit increases (35%) in consumer trust, satisfaction, and intent to use open banking digital banking solutions when the Visa brand is represented [2]. Furthermore, Visa Direct and its partners have maximum cash deposit thresholds to safeguard against money laundering.

More effective customer service for issuers

The primary financial relationship for most consumers is the one with their bank – a relationship that increasingly takes place digitally rather than at physical locations. Consumers are increasingly on the go and financial services need to evolve to support that. Decentralised cash deposit services through retail locations are an opportunity for financial services to meet customers as they go about their lives, offering additional banking touch points away from branch locations. More opportunities for consumers to make use of their accounts and debit cards can have major benefits for card issuers. Visa Direct data suggest that higher usage of digital debit services, such as instant deposits, can increase overall usage of debit cards and the current accounts linked to them. For example, debit card spending increased 8% in the UK and 14% in US as a result of an account receiving a Visa Direct enabled deposit, according to an August 2019 study [3].

Flexible, cost-saving solutions for retailers

Cash deposits creates new sources of revenue for retailers, as well as more flexibility to implement solutions to best fit their client base. Retailers can charge a fee for the deposit service and even “bundle” it with product sales. For example, retail locations may allow customers can make a no-fee deposit if they buy something from the store or reach a spend threshold, helping to retain loyal, happy customers. There is an operational benefit for retailers, too. By implementing this functionality through their Visa Direct enabled acquirer, retailers get a single integration to access multiple banks and can streamline their internal offering to customers.

Revenue generating opportunities for acquirers

Visa Direct has already enabled 68 acquirers [4] across Europe for a range of services. Since many acquirers are already set up to deploy cash deposits through the Visa Direct capabilities they are currently using, this solution can be taken to market more quickly than many assume. When the acquirers' retail clients offer cash deposits, it can mean additional revenue stream for those acquirers.

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Scaling cash deposit capabilities across Europe

Visa Direct innovations are improving interoperability in the financial system between banks and businesses — for nonstop convenience. By working with acquirers to enable cash deposit functionality, Visa Direct is delivering benefits across the payments ecosystem, creating new opportunities that acquirers can offer to their clients, and retailers can offer their customers.

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?For More Information Visit visa.com/visadirect

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[1] Which? Money Team, “Bank branch closures: is your local bank closing?”, Which?, Jun 2022.

[2] Visa conducted study on Open Banking, January, 2021. Visa conducted an online survey of 1,791 marketplace sellers and 1,603 gig workers (food delivery) in the US, the UK, and Spain.

[3] VisaNet conducted study, “Visa Direct Study – Impact on Debit Card Spend in the US, UK, and Russia”, August 2019. 319K UK debit cardholders, 2.5M US debit cardholders and 2.2M Russian debit cardholders.

[4] VisaNet data from 2022.