Nov 12 (Reuters) - Visa is partnering with fintech

Affirm to roll out a feature that will let U.S.

customers use a single card for both debit transactions and buy

now, pay later purchases, reflecting growing demand for flexible

payments.

The company is also launching the feature in the United Arab

Emirates via a partnership with Liv Bank and plans to expand

into Europe in the coming months, it said on Tuesday.

Customers are increasingly prioritizing convenience and

flexibility in payments, especially as e-commerce flourishes,

prompting companies to take proactive steps to maintain their

edge in an industry being reshaped by digital disruptors.

A Visa study found that 51% of card users want the ability

to access multiple accounts and funding sources through a single

credential.

Such customers typically have to carry a debit card for

everyday purchases and a credit card for larger transactions.

Visa's "Flexible Credential" feature is available in Hong

Kong, Japan, the Philippines, Singapore, Thailand and Vietnam.

Over the next 12 months, it will partner with different

digital and traditional banks to expand it, said Mark Nelsen,

Visa's global head of consumer products.

Visa's partnership with Affirm also reflects the growing

alliance between fintechs and traditional financial players.

While typically viewed as competitors, such collaborations can

allow both parties to unlock new revenue streams.

"We provide a platform for the fintechs to innovate at

scale, (that) is how we see ourselves," said Nelsen.

"It's a little bit easier for the fintechs to get started on

this. But as the ecosystem matures, you'll see some legacy banks

start to take advantage of it as well," he added.

Affirm CEO Max Levchin said the company was looking to bring

more people a product "that seamlessly brings debit and credit

together, without late or hidden fees."

The fintech already had 1.4 million active cardholders as of

September-end.