“As new data regulations create a guide for better consumer data privacy practices, and Gen AI transforms how we discover things online, Visa believes that payment data has a role to play in delivering these new and improved experiences,” Visa said in the statement.
Customer incentives unclear
Analysts pointed out that this will benefit Visa and merchants, but it’s not clear how they will encourage customers to share more information. This concern is particularly relevant because the success of this initiative will depend on customers’ consent.
“I think this mainly benefits Visa and the retailers,” said Pareekh Jain, CEO of Pareekh Consulting. “I don’t see much in it for the consumers when it comes to data sharing. For Visa to work effectively, customers should give their consent, and for this, customers should be incentivized. They might get some cashback or other benefits, but that part is not clear at the moment.”
