The future of faster payments for U.S. banks and fintechs

01/28/2026

Visa Direct and the future of faster money movement. A guide for U.S. banks and fintechs

The U.S. payments landscape is evolving rapidly, driven by consumer demand for faster, easier money movement and instant payouts. In this environment Visa Direct, the world’s largest money movement network, with approximately 12 billion endpoints across accounts, wallets, and eligible cards can be a critical enabler for banks and fintechs alike. Because Visa Direct offers real-time¹ payments, when paired with the bank sponsorship model it can open significant opportunities in high-growth verticals such as North America’s sports gaming market with its estimated payment volumes of $242 billion,² and the global cross-border remittance market which is expected to reach around $1 trillion by 2026.³ This blog explores how Visa Direct fits into the sponsorship ecosystem, the opportunities it presents, and the operational and compliance considerations U.S. banks and fintechs need to address to succeed.

1. Why Visa Direct matters in today’s market

Visa Direct is a real-time solution platform, helping you move money in real-time⁴ to approximately 12 billion global endpoints across accounts, wallets, and eligible cards unlocking use cases like:
  • Gig economy payouts
  • Insurance disbursements
  • Sports betting and gaming withdrawals
  • Cross-border transfers
  • Marketplaces and e-commerce refunds

The recent Datos Insight ‘Bank Sponsorship for Faster Money Movement’ report⁵ commissioned by Visa, notes a sponsor bank executive cited Visa Direct as one of their top growth drivers. In cross-border contexts, Visa Direct provides an alternative to traditional wire transfers, using the reach of the Visa Direct global network and APIs to deliver funds in minutes, offering transparency, and advanced fraud protection.

2. The role of bank sponsorship in Visa Direct deployments

In the U.S. non-bank fintechs cannot directly access payment networks like the Visa network. They require a sponsor bank to provide the necessary licenses, compliance oversight, and payment rails.
A successful sponsorship arrangement for Visa Direct could include, as an example:
  • Capital strength of the fintech partner
  • Clear business plans detailing target customer segments and intended services
  • Robust compliance programs (BSA/AML, KYC)
  • Experienced leadership teams
  • Thorough due diligence on both the fintech and its critical third-party providers

Sponsor banks must evaluate these elements with the same rigor as opening a new bank branch—integrating operations, compliance, and credit risk from the start.

3. Key considerations for banks entering the space

Launching a sponsorship program for Visa Direct may require significant resources. Banks should consider areas such as staffing, compliance and risk, account oversight, documentation practices, technology for monitoring, and partnership agreements. Each organization should evaluate these factors in light of its own objectives and regulatory environment.

4. Compliance as a competitive edge

The Bank Sponsorship for Faster Money Movement report highlights that regulatory trends indicate increased attention to sponsorship chains and the relationship between banks and end customers. Organizations operating Visa Direct programs may wish to stay informed about evolving oversight expectations and consider practices such as early investment in compliance, technology-enabled monitoring, and regular partner reviews to support regulatory adherence.

Organizations may wish to consider establishing robust compliance practices early, including building experienced teams and leveraging technology for monitoring. Ongoing partner audits can help support adherence to Visa and regulatory requirements. Many industry participants view strong compliance as a strategic advantage for sustainable growth.

Strong compliance is not a check-box exercise or a cost center, it’s a strategic moat that enables sustainable growth.

5. Opportunities for banks and fintechs

Visa Direct facilitates payments with these payment verticals:

  1. Sports gaming payouts. Real-time withdrawals are now a competitive differentiator for gaming operators.
  2. Cross-border remittances. Visa Direct facilitates faster, more transparent transfers with fewer intermediaries.⁶
  3. Gig economy and marketplace disbursements. Speed and flexibility in payouts improve user retention and satisfaction.

As large banks continue to acquire or partner with fintechs, smaller players can thrive by focusing on niche or bespoke Visa Direct use cases that solve specific customer pain points.

6. Best practices for launching a Visa Direct program with sponsorship

To maximize success:

  • Start with a clear go-to-market plan. Know your target users, use cases, and compliance requirements.
  • Choose your sponsor bank carefully. Evaluate their embedded finance capabilities, experience with Visa Direct, and willingness to support rapid feature rollouts.
  • Invest in compliance and monitoring early. Build scalable systems and processes before transaction volumes climb.
  • Align incentives. Avoid internal conflicts between compliance and revenue teams.
  • Plan for cross-border complexity by understanding FX, local regulations, and settlement timelines.

7. The road ahead

Visa Direct is not just a means to facilitate faster payments, it is innovating how money moves in the U.S. By combining Visa Direct with the bank sponsorship model, banks and fintechs can deliver real-time¹ payment experiences at scale while navigating the complex regulatory landscape.

The winners in this space will be those who:

  • Treat fintech partnerships as core banking operations, not siloed innovation labs
  • Build compliance strength as a foundation rather than an afterthought
  • Use Visa Direct’s flexibility to address both mainstream and niche payment needs

In a market where speed, security, and user experience define competitive advantage, Visa Direct—backed by a strong sponsorship strategy—offers a clear path to growth.

Takeaway:

If you’re a U.S. bank or fintech looking to innovate in real-time¹ payments Visa Direct through a well-structured sponsorship arrangement could be your key to unlocking new revenue streams while meeting rising customer expectations. The challenge is execution: getting compliance, partnerships, and technology right from day one.

 

 

Visa Direct. Move money your way.

To learn more about money movement, visit: visa.com/visadirect

Bank Sponsorship for Faster Money Movement

Read the full report to learn more about the benefits banks can gain in sponsoring money movement programs and best practices around preparing for sponsorship as a fintech.

Read the full report
  1. Actual fund availability for all Visa Direct transactions depends on receiving financial institution, account type, region, compliance processes, along with other factors as applicable.
  2. Transforming Gaming Payouts with Visa Direct, Visa, 2023.
  3. Revolutionizing Money Movement, Visa, 2024.
  4. Actual fund availability depends on receiving financial institution, account type, region, compliance processes, along with other factors as applicable.
  5. Visa Direct and Datos Insights: Bank Sponsorship for Faster Money Movement.
  6. Availability varies by market. Please refer see a Visa representative for more information on availability.

*All studies, surveys, research, and materials owned or commissioned by Visa shall not be used, reproduced, copied, or recirculated without the prior written consent of Visa.