As banks continue to push more services into digital channels, identity verification is becoming one of the most critical pressure points in customer experience and fraud prevention. Visa is now positioning the payment card itself as a secure digital identity tool, introducing a new tap-based authentication model designed to replace traditional SMS codes and manual verification processes.
Visa has announced the first deployment of its new Tap to Confirm and Tap to Activate technology in partnership with Keyno and Fidelity Bank (Bahamas) Limited.
The solution allows customers to verify their identity or activate payment cards by simply tapping their Visa card against a mobile device within their banking application. Instead of relying on one-time passwords, SMS authentication, or call centre verification, the system uses EMV-level cryptographic security to authenticate users in real time.
Visa said the technology is powered by its proprietary Chip Authenticate service and integrated through Visa Transaction Exchange (VTEX) APIs operating across VisaNet, the company’s global payment processing infrastructure.
The initiative marks one of the first large-scale attempts to turn payment cards into reusable digital identity credentials for banking services beyond transactions.
Focus on reducing fraud and onboarding friction
According to Visa, the technology is designed to help banks streamline customer onboarding, accelerate card activation, and reduce operational dependency on support teams for identity-related requests.
The tap-based authentication capability can also be used for higher-risk account actions including:
- Password resets
- Mailing address changes
- High-value money transfers
- Account limit modifications
Visa claims the EMV cryptogram-based validation offers stronger protection than SMS-based authentication methods, which continue to face growing fraud risks linked to SIM swaps, phishing, and interception attacks.
Mike Romero, Head of Digital Solutions for Visa Latin America and the Caribbean, said identity verification has become one of the biggest friction points in digital commerce and banking, adding that Visa is now transforming the physical payment card into a secure digital identity credential.
Robert J Steinman, CEO of Keyno, said the partnership aims to make digital banking safer and simpler by enabling secure identity verification through a single tap interaction.
Following the pilot rollout with Fidelity Bank, Visa plans to expand Tap to Confirm globally throughout the year as part of its broader authentication and digital security strategy.
What this means for the industry
- Payment cards are evolving beyond transactions into broader digital identity tools
- Banks are increasingly looking to reduce reliance on SMS-based authentication due to fraud risks
- Tap-to-authenticate models could significantly improve onboarding and account recovery experiences
- EMV-based identity verification may become a competitive differentiator for mobile banking apps
- Visa is expanding its role deeper into authentication infrastructure, not just payment processing
