Visa’s VDEP is HUGE – Reason #1

VDEP is a MASTER STROKE! WOW! A Brilliant move by Visa to make payments, wallets, tokenization and USE easy.

I thought I was the last one to know about VDEP (see PR). Turns out I was one of the first.  Today I was at a top 5 Issuer and Google just called them to say Wallet (errr correction Android Pay) is delayed a little while they finish token integration.  Google initially wanted 15bps (like Apple) and had 6 or so bi lateral bank agreements in hand (see Bank logos displayed on Android Pay’s site for who signed).

android pay


Some of the banks (like JPM) said no way.. and you should pay us “Google you are no Apple”. The chaos of some cards not in some wallets was just about to hit, when Visa created common ground. Telling everyone (banks and wallet providers) that if you accept tokens, you accept all wallets (and all cards). Also setting rules to limit (read eliminate) data leakage from the transaction/wallet, and ensuring there is no discrimination (CARD OR WALLET). This basically BLEW UP all of Google’s bilateral deals (looks like 6 of them).. Google initially was more than a little upset .. resulting in CEO level conversations. I believe Charlie and Jim McCarthy told everyone why this was a good thing: Establishing a common token facility with wallet provisioning facility + new rules on use.

Banks can now expect to enroll in Google wallet much they way they enroll in Apple Pay.. only guess what ? NO 15bps!   This same flow will also happen for errr… Samsung Pay… and I would guess other token schemes like Visa Checkout (eventually).  This is just a masterstroke.. it would take me 10 blogs to explain in order to do this topic justice.

Now every bank can provision any Visa card to any wallet that abides by the rules of VDEP! This GREATLY simplifies the old NFC provisioning process.. as an example.


Well good news for Europe and ROW is that it will be 0.. that is right.. no more bps for APPLE!! They question then becomes when does APple’s 15bps expire?  I have no idea..


Google is now running around with NEW agreements for rights to display the Google/Android Pay logo. Deals include mandatory advertising spend. My recommendation is to ignore this for next 4 months or so.. your card WILL BE ABLE to be in Google’s wallet. You don’t have to spend a dime unless you want to display Google’s logo somewhere.

… on a funnier/sad note.. Apple is rumored to have met with TCH last week to discuss an alternative token scheme (to Visa/MA). Good luck with that!