To some, Visa seemed like a laggard in the emerging alternative payments industry. This wasn't fair, but it was easy to buy into the notion that dominant companies have a nearly impossible task when they try to transfer their dominance across paradigm changes. So there was always the tendency to discount Visa--and MasterCard for that matter--in the race for the future, this despite a steady stream of news about its mobile ambitions, which included its NFC pilot program with Bank of America. 

But the sheer scope of the company's ambitions weren't clear until it announced it would launch its digital wallet in the fall. Here's a video. 

The idea here is an all-in-one digital tool for the next generation of personal commerce. The digital wallet will accommodate Visa and non-Visa payments accounts, support NFC through its previously disclosed Visa payWave application, and accommodate multiple transaction platforms, such as traditional eCommerce, mobile commerce, micropayments, social networks and P2P payments. The marketing has been rather breathtaking, as the firm seems to be aiming for nothing less than the economic transformation of the entire underdeveloped world. 

Visa is touting the following:

• Click-to-buy. Shop online by entering an email address, alias or online ID and password, instead of a billing address, account number and expiration date. Visa is also exploring dynamic authentication technologies. The company is taking aim at Amazon and PayPal with this feature.
• Cross-channel payments solution. The service consolidates multiple Visa and non-Visa payments accounts--interesting!--and can be used in mobile, eCommerce, social network and at retail points-of-sale.
• Preference management. Lots of options for customers, which could backfire if not done well.
• Merchant offers. It has sensed the power of Groupon and its many competitors. It would like to bring that same model to consumers enabling money-saving discounts or promotions. 

It should be noted that the much-ballyhooed competitor to traditional powers like Visa and MasterCard--the ISIS consortium--was run by the telcos. Initially ISIS cut out Visa. But in a telling twist, it recently reversed itself and opened up to participation by Visa and MasterCard. Google has also partnered with MasterCard. So any attempts at a grand disintermediation might be fading. Long live the Visa network? It's too early to tell. 

One more point: In its digital wallet effort, Visa has inked support from a host of financial institutions for the project. The list includes Barclaycard US, BB&T, First Financial Bank of Ohio, Pentagon Federal Credit Union, PNC Bank, Regions Bank, Royal Bank of Canada, Scotiabank, TD Bank Group and US Bank, among others.  

The curious exception is Bank of America. Visa obviously intends to leverage its relationships with banks to lift itself into the pole position as the new era gets underway. No doubt the card company would have loved to include Bank of America on this list, and it's anyone's guess as to why this didn't happen. - Jim