Commerzbank has extended its agreement with Visa to make the payments giant the bank’s preferred card issuer.
As a result of the partnership, Commerzbank customers will preferentially receive debit and credit cards from Visa, with the bank expecting to send new cards to its retail customers in 2026.
Additionally, the deal aims to ensure Commerzbank benefits from Visa’s future payments ‘innovations’. The bank’s Giocards will be the first product to change following this agreement, equipping the cards with the Visa debit function. This aims to make purchasing goods abroad and online easier.
Thomas Schaufler, Chief Private and Business Clients Officer of Commerzbank, commented: “We are very pleased to expand our partnership with Visa. Together, we will further develop our payment offerings as an important part of our growth trajectory.
“Our customers can look forward to a strong offering with worldwide acceptance, secure online payments, and easy integration into mobile wallets.”
Commerzbank and Visa have placed a focus on private customers. Through this collaboration, they have agreed to cooperate on payment security, expand marketing of account and card offerings, as well as provide tailored products for business and corporate clients.
Albrecht Kiel, Regional Managing Director Central Europe at Visa, said: “We are taking our collaboration with Commerzbank to a new level with this forward-looking strategic partnership. Together, we aim to shape the future of payments.
“To this end, we will leverage our global network, our innovative strength, and our expertise in cybersecurity. With two strong brands in the retail banking sector and its leading position in the German SME sector, Commerzbank is an outstanding partner in a key market for Visa.”
The growing threat of instant payments
While cards remain the most adopted payment method across the Western world, in particular Europe, other regions have started to shift towards instant payments. In Brazil, Pix has dominated the payments landscape.
As of December 2023, the payment method had over 150 million users across both business and consumer accounts and has recently started to expand internationally. Portugal and Spain have begun offering Pix to tourists, whilst talks have reportedly been held with stakeholders in Italy and five unnamed Asian countries.
Elsewhere, the Swiss National Bank (SNB) announced last year the launch of instant payments, with around 60 financial institutions able to process instant payments, covering over 95% of Swiss retail transactions.
