Viewpoints

Visa’s Blog – Visa Viewpoints

PERSPECTIVES ON DIGITAL CURRENCY

Feb 27, 2013

Benefits of Digital Currency

A Dollar a Day, Slowly Frittered Away

Keeping track of cash can be a hassle, especially with today’s busy – and increasingly globe-trotting – lifestyle. In fact, the recent Visa Payment Attitudes Study has revealed that we lose on average US$365 each year by using cash instead of cards. If you worked from 20 years old until you were 65 and lost that much every year, it would amount to a whopping US$16,425!

This consists of US$80 worth of idle change just lying around the home, car or office, and US$285 worth of unused foreign currency lost after trips abroad. This seemingly small amount, that averages a dollar a day, is actually equivalent to the cost of 6.5 grams of gold or supporting a family of four in Bangladesh for a year!

The study also revealed that keeping tabs on our hard-earned money and worrying about carrying cash around is a concern for us too. The majority of respondents (54 percent) said the key reason they have a debit card is because it is more convenient to carry around, rather than being weighed down by a large amount of cash. They also like debit because you can use it to make online purchases (45 percent) and to keep their finances in check, with over half (53 percent) saying it is good for smart financial management because the payment is debited directly from their regular bank account.

We’ve long known that carrying cash can be inconvenient and unreliable, and now this research proves that we are out of pocket by using cash too! See the infographic below for a breakdown of the results and which countries are losing out on the most by sticking to cash…

 For more on the study visit
 

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Posted by: Jag Mistry, Corporate Relations, Visa Inc. on February 27, 2013 at 6:35 am

Category: Benefits of Digital Currency, Surveys, Studies & Research, Uncategorized
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Feb 21, 2013

A Penny-Free Canada

 

 

It’s official. As of Monday, February 4, the Royal Canadian Mint stopped distributing pennies to banks and retailers in Canada. Pennies are now more expensive to produce than they are worth and so the move is cited to save Canadian taxpayers around $11 million a year.

A lot has changed since the penny was first minted in Canada in 1908. Today, most people are not in the habit of carrying around much spare change. In fact, according to the Retail Council of Canada only 22% of merchandising transactions in Canada are done in cash, and The Globe and Mail’s Editorial team recently said, “Soon, cash will be the least convenient way to pay for small purchases…we are heading toward a world in which cash will be less and less vital.”

In fact, we found in a recent  Moody’s study commissioned by Visa that the growth in the use of electronic payment products, such as credit and debit cards, added US$9.7 billion to the Gross Domestic Product (GDP) of Canada over the last four years by reducing transaction costs and improving efficiency in the flow of goods and services. Electronic payments allow consumers quick and instant access to their funds. Retailers no longer have to deal with burdens and risks associated with cash. And governments benefit from increased transparency.

As we say goodbye to the penny in Canada, we at Visa are excited to be driving payments innovation and we remain committed to being the best way to pay and be paid.

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Posted by: Michelle Michalak, Visa Corporate Relations, Canada on February 21, 2013 at 11:30 am

Category: Benefits of Digital Currency, Canada, Research
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Feb 19, 2013

Electronic Payments Modernize the Face of Government Benefits

From eCommerce to eBanking, digital commerce is changing the way people around the world shop, pay and be paid.  The Electronic Payments Association explains that the average business saves between $2,000 and $7,000 annually by using electronic payments rather than paper checks. 

 The cost savings, enhanced security, broad convenience and universal acceptance of electronic payments have recently prompted the U.S. government to mandate the trend and extend the benefits of digital payments to Social Security payment recipients.  Beginning March 1, 2013, paper checks for Social Security benefits will virtually disappear.

This will affect five million Americans still receiving Social Security or Supplemental Security Income benefits by check, and save taxpayers more than $100 million a year.  The switch will enhance security, help decrease fraud and eliminate theft of paper checks from mailboxes by issuing funds directly to the recipient, electronically.

It’s clear that more than ever technology is shaping the way we live nearly every aspect of our lives.  Single function currency like cash and check comes with significant limitations, especially when consumers shop online, move between payment devices and need their payments to move seamlessly with them and work reliably wherever they shop.  Using credit, debit, and prepaid cards is the norm for many Americans and this is one more step in the march away from paper checks and cash.

For more information on the transition to electronic benefits, visit: http://www.ssa.gov/

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Posted by: Jennifer Schulz, Global Head of eCommerce on February 19, 2013 at 4:19 pm

Category: Benefits of Digital Currency, Partnering with Governments
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Jan 29, 2013

Visa and Citi Launch Financial Inclusion 2020

Visa joined with the Center for Financial Inclusion and Citi to launch a new global campaign — Financial Inclusion 2020 — with the goal of achieving a world with full access to quality financial services for all by the year 2020. By uniting leading companies, NGOs and policymakers, Financial Inclusion 2020 will build a roadmap to reaching universal financial inclusion. Achieving full financial inclusion will not only improve the lives of billions of people, it will drive economic growth, accelerate women’s empowerment and remove a major obstacle in the fight against global poverty.

Read more about Visa’s support of Financial Inclusion 2020 in an op-ed piece in Business Insider by Bill Gajda, Head of Global Mobile Product at Visa and Pamela Flaherty, Director of Corporate Citizenship at Citi and President and CEO of the Citi Foundation here.

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Posted by: Douglas Sabo, Visa Corporate Responsibility on January 29, 2013 at 10:18 am

Category: Benefits of Digital Currency, Financial Inclusion
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Jan 10, 2013

Will 2013 Be the Year of Cashless Restaurants?

The benefits of switching to a cashless operation have long been touted as an evolutionary asset of the restaurant industry. In such a competitive market, new technology must be researched, developed and introduced on an ongoing basis. This is especially true in New York City – a city known by many as a forefront of innovation and business, cultural, and educational opportunity. But could 2013 be the year that restaurants go cashless? Some trends are pointing to yes.

As the United States Treasury slows its printing presses and plastic becomes the preferred method of payment for consumers and businesses alike, industry experts predict more establishments will say goodbye to dollars and cents. There is simply no ignoring the convenience and security afforded by going cashless. Furthermore, if predictions are correct, 2013 will be a big year for mobile payment solutions among small and medium size businesses.

The popular New York City eatery Commerce is just one restaurant going cashless. In September 2009,  it announced that it would no longer be accepting cash in September 2009—and now the owners are scouting for locations in New York to expand the business to a cashless fast-food restaurant chain. “It’s because so little of our business is done in cash,” explained owner Tony Zazula, restaurant business veteran of over 20 years. “It’s the age of electronic transfers. There’s no reason to have two systems.”

As Zazula and his business partner Harold Moore are planning their new quick-casual eating venture, they remain steadfast in their card-only policy. Zazula explains, “It makes complete sense.”

Visa and Commerce have joined forces to produce the following mini-documentary about the restaurant and the new NYC spot opening soon. Hear directly from Zazula and Moore about why this initiative has been so successful, and how, as Zazula puts it, “going cashless allows [Commerce] to be true to [its] heart.”

Could 2013 be the year of cashless restaurants?

Also, be sure to check out this original video featuring Commerce’s cashless operation: http://currencyofprogress.visa.com/cashless-cuisine-debuts-in-new-yorks-west-village/

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Posted by: Lucas Mast, Visa Corporate Relations on January 10, 2013 at 7:05 am

Category: Benefits of Digital Currency, Currency of Progress, Small Business
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Dec 6, 2012

Analyst Viewpoints: IntelliLink offers Card Solutions for B2B

Last week I shared Patricia McGinnis’ perspective on the future of the paper-based payments. In this second video featuring the payment industry vet from Mercator Advisory Group, McGinnis shares her viewpoint on how Visa IntelliLink Solutions functions as a unique tool in the B2B space. She thinks (among other things) that the flexibility that comes with IntelliLink allows corporations to create distinct card programs with specialized rules, compliance, auditability and risk controls. Check out this video for more of her thoughts on B2B card solutions. Also, I’d be eager to hear readers opinions on this tool so let me know what you think!

 

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Posted by: Erika White, Visa Corporate Relations on December 6, 2012 at 9:34 am

Category: Benefits of Digital Currency, Technology & Innovation
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Nov 29, 2012

Analyst Viewpoints: The Future of the Paper-based Payments in the B2B Space

Like many experts, Patricia McGinnis, a payments industry vet with Mercator Advisory Group, foresees a steady increase in card-based payments. She also notes that this shift is already well underway with checks accounting for only about half of B2B payments in the U.S.

I sat down with McGinnis recently. She’s been looking at trends in the industry for more than 15 years and always has an interesting perspective especially when it comes to the commercial market. During this conversation, I asked her how she saw the shift from paper-based to electronic payments playing out in the commercial space. While there is a huge opportunity, McGinnis notes that the opportunity is there for the taking and there are some challenges in the card market that need conquering. Check out this video for more of her thoughts. Where do you see commercial payments in 2013?

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Posted by: Erika White, Visa Corporate Relations on November 29, 2012 at 9:42 am

Category: Benefits of Digital Currency, Technology & Innovation
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Nov 13, 2012

Rwanda, Inc.: Developing a model for economic growth

As you know, last December, Visa and the Government of Rwanda announced a groundbreaking partnership to ‘electronify’ the Rwandan economy.  The partnership aims to connect 11 million Rwandans to the formal financial sector.  To do this, we have been focused on key areas including: developing the basic infrastructure needed to enable country-wide use of electronic payments, promoting electronic payments innovation by taking advantage of rapidly developing technologies like mobile payments, and building capacity and infrastructure through financial literacy and job training programs.

It is the clear vision and strategy for growth in Rwanda that Andrea Redmond and Patricia Crisafulli chronicle in their new book, Rwanda, Inc., which launched today.  We are proud to be in the company of such qualified individuals who also see Rwanda as the “ultimate turnaround” story.  The book describes how, in two decades, Rwanda went from complete devastation after the genocide 18 years ago to impressive economic development and GDP growth that has lifted one million people out of poverty in the past five years alone.  Through direct access to the Rwandan government, the authors take the reader through Rwanda’s complicated past, from civil war and genocide to the promising present.

Like Andrea, we believe in the opportunity that exists in the region, and have focused our financial inclusion strategy to target a very important customer base, both for Visa and the Rwandan government, to help build a model for other appropriate economies. Enabling individuals opportunities to better manage their financial lives is a significant step towards advancing economic expansion.

We are honored to support Andrea in the launch of her insightful book, and believe in its message. Rwanda is open for business, and we are proud to be there.

NOTE: Andrea Redmond is a consultant who works with corporate boards, CEOs, Fortune 500 companies, and private investors.  She sits on several boards of directors, including The Allstate Corporation, Children’s Memorial Hospital, Northwestern University Hospital, and the Robert H. Lurie Cancer Center.

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Posted by: Doug Michelman, Global Head, Corporate Relations, Visa Inc. on November 13, 2012 at 3:11 pm

Category: Benefits of Digital Currency, Financial Inclusion, Financial Literacy
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Sep 20, 2012

Going Cashless: One Minute With Gordon Cooper

Yesterday we announced Visa’s founding participation in the Better Than Cash Alliance, an initiative aimed at accelerating the shift from physical cash to electronic payments to help advance financial inclusion among the world’s unbanked population.  The Alliance builds upon Visa’s global commitment to financial inclusion, including our work to enable consumers to send, receive and store money electronically in a safe, reliable and affordable way. 

In this video, Visa’s Gordon Cooper shares his own “Better Than Cash” encounter and his thoughts on the challenges impacting cash-based economies. Gordon brings significant experience working with the world’s unbanked leadership  for our emerging markets solutions. Prior to his current role in Singapore, Gordon has been based for Visa in Tokyo London, and Ho Chi Minh City. 

 

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Posted by: Douglas Sabo, Visa Corporate Responsibility on September 20, 2012 at 4:04 pm

Category: Benefits of Digital Currency, Financial Inclusion
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Sep 19, 2012

Visa Joins Global Leaders in New Partnership to Promote Electronic Payments and Improve Lives

Today, Visa joins with six partners from government, the private sector and the international development community to launch the Better Than Cash Alliance. Working together with our other founding members – the United Nations Capital Development Fund, the U.S. Agency for International Development, Citi, the Bill & Melinda Gates Foundation, the Ford Foundation, and Omidyar Network – the Alliance will help bring many of the world’s 2.5 billion unbanked people into the financial mainstream by providing them with resources that are safer and more useful than physical cash.

Around the world, governments, the development community and the private sector are making billions of dollars in cash payments to the poor – in salaries, pensions, emergency relief, social aid and more. Making these payments in physical cash or in-kind goods costs poor people time and money and can be unsafe.

To begin with, people in developing countries often have to travel great distances just to collect cash payments. That can mean days away from work and their families and, worse, the risk of being robbed on the journey back. Delivering cash to poor recipients often involves several couriers – and if any of these intermediaries pocket part of the amount, cash is impossible to track.

For anyone without a bank account, cash also is hard to save. Shifting payments to electronic or mobile payments offers more security and convenience – and, more importantly, an onramp to financial inclusion by providing easier access to accounts they could use to save, get a loan or make payments of their own.[1]

At Visa, we are proud of the work we are doing already around the world to help governments enable the electronic delivery of social benefits and other disbursements. For example, in Mexico, Visa works with the government-owned Bank of National Savings and Financial Savings (Bansefi) to distribute social program benefits via Visa debit and prepaid cards to 6.5 million people, giving recipients opportunities to use financial services to save, budget and improve their lives.

In the Dominican Republic, Visa and the government teamed up to boost the national financial inclusion rate and address theft and delay issues of government benefits by distributing reloadable Visa Solidaridad cards. Today, more than 800,000 people in the Dominican Republic receive their aid via Visa card—which also helps provide customers for local merchants as those citizens use their cards to pay for food, fuel and medicines.

Through this innovative partnership, Visa and our partners in the Alliance aim to provide governments, the development community and the private sector with the inspiration, technical expertise and financial support to commit to making the transition to electronic payments and unleash new potential to reduce poverty and promote economic development.

Learn more by visiting the Better Than Cash Alliance website.


[1] As referenced in “The Journey Toward ‘Cash Lite,’” a study by Bankable Frontier Associates and commissioned by the Better Than Cash Alliance.

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Posted by: Doug Michelman, Global Head, Corporate Relations, Visa Inc. on September 19, 2012 at 11:04 am

Category: Benefits of Digital Currency, Financial Inclusion
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