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PERSPECTIVES ON DIGITAL CURRENCY

Apr 12, 2012

Currency of Progress

FROM UNDER THE MATTRESS AND INTO A BANK: INCREASING FINANCIAL ACCESS FOR WOMEN IN NIGERIA

Provisions seller in Nigeria 

Today, Visa’s Chairman and CEO, Joe Saunders, joined with the President and CEO of Women’s World Banking to announce that our two organizations are partnering to advance financial inclusion for women in Nigeria. As part of the announcement, they shared their perspectives in an editorial in the Huffington Post about how financial inclusion can help transform the lives of women in emerging markets.

Nearly 2.5 billion people – almost half the world’s adult population – do not have access to formal financial services. Without basic payments and savings accounts, money often is kept in cash under the mattress then moved around from person to person, drastically increasing the risk of theft or loss. Even a task as simple as paying a bill – in person and via cash – can be unsafe, costly and time-consuming. The implications of this financial exclusion are significant and far-reaching, reinforcing the cycle of poverty and slowing economic progress.

In emerging economies around the world, this can be a particular challenge for women. In Nigeria, for example, nearly 77 percent of women lack access to financial services.  Yet, they often serve as the primary financial managers in most families, expected to stretch meager and irregular incomes to meet daily household needs, not to mention long-term budgeting for life’s unexpected shocks.

 The initiative in Nigeria that was announced today will help provide women there with an opportunity to become economically and socially empowered through access to a savings account.

Read more about the Visa and Women’s World Banking initiative.

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Posted by: Douglas Sabo, Visa Corporate Responsibility on April 12, 2012 at 7:31 am

Category: Currency of Progress, Financial Inclusion, Partnerships
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Mar 13, 2012

No Coins Required: Card-Enabled Parking Meters Grow in Popularity Nationwide

A recent article in the Washington Post noted the installation of forty-one parking meters in Bethesda, Maryland, that now accept payment via credit and debit cards, rather than just cash.  This reflects a growing trend of card-enabled parking meters popping up all over the country, from San Francisco to Los Angeles to Washington D.C.  It also speaks to the larger migration from cash to digital currency in the U.S.  Since 2000, electronic payments (including card brands) have increased share of personal consumption expenditure from 20% to 32% (CY 2010).[1]

Smaller municipalities have jumped on the parking-meter bandwagon as well, and some with significant gusto.  Bethlehem, Pennsylvania (population 74,900), recently added 300 card-enabled meters to their existing 100, partly as a result of consumer demand as the new parking meters have been the top request of downtown shoppers, according to the manager of the Downtown Bethlehem Association.  The city has certainly taken note:  according to Bethlehem Parking Authority Executive Director Tom Hartley, “the increased meter rates have more than doubled the authority’s meter revenues…the first two months of 2012 brought in $218,474 compared with $106,670 last year.”

The new meters require a capital investment, but as shown, they can provide more revenue than traditional meters because they are equipped with sensors that detect when cars pull out of a parking spot to absorb any unused time.  For drivers, it means less hassle looking for change to feed hungry meters.   

It seems the new meters are a win-win for all parties concerned, and that’s the kind of progress we support.  Learn more about the ways Visa digital currency is innovating to make transit more efficient for governments and consumers at Currency of Progress.

[1] SEC filings and press releases for card brands and IHS Global insight for PCE

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Posted by: Albert Coscia, Visa Corporate Relations on March 13, 2012 at 2:30 pm

Category: About Visa, Benefits of Digital Currency, Currency of Progress
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Dec 7, 2011

Creating Opportunities for Mexico’s Underserved

If seeing is believing, then my recent trip to Mexico re-opened my eyes to the real benefits of digital currency, particularly in the lives of low-income families around the world. During a whirlwind four-day trip, we captured the experience of Angélica Cruz Romero, who receives her government benefits on the Oportunidades Visa card, as part of the Currency of Progress video series.

Angélica lives in a modest home on the outskirts of San Juan del Rio, a city of 120,000 people in the state of Querétaro. She is one of millions of formerly unbanked or under-banked Mexican consumers who receives social benefits on a prepaid debit card that keeps her money safe and can be used anywhere Visa is accepted.

As part of the visit, we also interviewed Bernardo González, general associate director of Bansefi, the government-owned issuer of the Visa card. In the coming months, Bansefi aims to include all 6.5 million beneficiaries in the Visa debit card program as part of its long-term goal to reduce poverty by bringing more Mexicans into the formal financial system.  “This is absolute[ly] the door to financial inclusion,” he said.

For Angélica, receiving funds electronically gives her peace-of-mind, flexibility and the promise of a better life for her family. I’m very optimistic because I’m taking my children on the right path,” she said. “And this program has helped me a lot because I am heading in the right direction where I wasn’t before.”

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Posted by: Richard Martin, Visa Corporate Relations on December 7, 2011 at 3:58 pm

Category: Currency of Progress, Debit, Financial Inclusion, Prepaid
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Oct 3, 2011

Currency of Progress Expands to Brazil

When Currency of Progress launched in the United States in 2009, we told the story of a Brazilian father – and passionate soccer fan – who could finally take his son to a match thanks to the safety and speed of ticketless entry at the stadium, powered by Visa digital currency. 

Today, Visa is launching a Currency of Progress website just for Brazil, providing Visa with a robust platform for communicating the benefits of digital currency to key local influencers. Brazil is the latest of six priority countries where we’re activating local sites, including India, Japan, Mexico, and Russia, with China planned for the end of the calendar year. We’ve also redesigned the Currency of Progress global website and developed supporting materials that tell the breadth of Visa’s story – from our impact on economies to the unique value of our global network, VisaNet.

We believe that when influential stakeholders see these stories – spanning the globe from India to Brazil to the United States – they will develop a deeper understanding of the important and positive effects Visa has on individuals, businesses and governments.

As stakeholders visit the site and learn more about Visa’s Currency of Progress, they will be able to understand the ways Visa is:

  • Supporting business by showing how Visa technology and payment products help merchants manage their cash flow, improve their bottom line and grow their business.  
  • Empowering people by giving individuals fast, convenient, reliable and secure access to their money, empowering them with the tools they need to live their lives.
  • Growing economies by facilitating the shift to electronic payments from cash and checks thereby delivering tangible benefits to economies.
  • Partnering with government to improve efficiencies and empower their citizens — from the distribution of benefits in digital currency to the procurement of vital goods and services electronically.  

Check out the latest stories at http://currencyofprogress.visa.com/.

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Posted by: Ruben Osta, Country Manager, Brazil on October 3, 2011 at 12:43 pm

Category: About Visa, Benefits of Digital Currency, Currency of Progress
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Sep 30, 2011

Brazil: Accelerating Financial Inclusion

This week I had the opportunity to address attendees at the Congress of Electronic Means of Payment  in Brazil to discuss a topic that is central to our business at Visa and critical to the long-term viability of the financial services industry as a whole – financial inclusion, or helping 2.5 billion underbanked adults around the world access more formalized financial services. 

There is no arguing that Brazil itself is a star on the world stage. The nation is a vibrant economy with growing global influence and enormous potential. Today, Brazil has an opportunity not only to catch but to leapfrog more established nations in economic development and social progress. To do so, the country needs capacity in its formal economy – planned in a way that will allow for long-term, sustainable growth. Access to formal financial services for all citizens is imperative to this equation.

How can we expand access to these services in Brazil and abroad? In part, by accelerating the migration from costly and risky paper-based forms of payment – cash, checks, vouchers – to digital currency. In Brazil, this migration is already moving at unprecedented speed.

Visa can help expand financial inclusion by doing what we do best. We are a company built and grown over 50 years to facilitate connectivity. We can connect disparate organizations – including governments, NGOs, mobile phone companies, as well as merchants and financial institutions – to effectively reach the billions of unbanked consumers around the globe and help make their financial lives more efficient, less expensive, less risky, and more convenient.

While much progress has been made to bring more people into the formal financial system, much work remains. As I shared in Brazil this week, we believe there are several key imperatives which the industry can pursue to advance financial inclusion. These include:

  • Develop a deep understanding of unbanked consumers’ needs and offer a tailored approach to deliver the products/services they require
  • Encourage strong and sustainable cooperation between the public and private sectors toward our shared goals of inclusion
  • Increase our level of investment in technology and innovation (like mobile and eCommerce) that give consumers access to their money in new and creative ways
  • Engage in dialogue with lawmakers so they understand the benefits of digital currency, and pursue informed, growth-oriented public policy
  • And finally, we must ensure that everyone who enters the financial system does so with a solid foundation of financial literacy in order to participate successfully

Delivering on each individual imperative can help accelerate financial inclusion. But taken together, these ingredients can bring the vast benefits of electronic payments – and all financial services – to the whole of Brazil and other markets around the world. And that will be a very good outcome for us all.

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Posted by: Bill Sheedy, Group President, Americas, Visa Inc. on September 30, 2011 at 9:54 am

Category: Currency of Progress, Financial Literacy
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Sep 29, 2011

Demand for Cashless Cabs in Chicago

Earlier this week, the Chicago Tribune ran an article about the common practice of Chicago cab drivers only accepting payments in cash.  This is despite the city’s Passenger Bill of Rights that assures payments can be made with credit or debit cards.  In “Some Cabdrivers Ride Patrons Over Plastic,” the author shares her frustration with not being able to use her debit card which she prefers over cash and checks.  

The author’s desire to pay by card was echoed by Mike Levine, owner of the Yellow Cab Company in Chicago.  In the article, he mentioned that the biggest complaint he heard from riders was the difficulty of using credit cards for payment.  He went on to say that he’s made it his mission to put more card machines in the back of cabs.  He’s also encouraging drivers to accept cards in an effort to grow his business and gain a favorable reputation. Levine pointed out that drivers stand to earn bigger tips from card-paying customers, citing company research that shows credit card users tip about 18 to 20 percent, while those who pay with cash generally tip about 15 percent. 

The reluctance of some cab drivers in Chicago is a departure from the taxi experience in New York City, where payment cards are fully embraced.  Every taxi in the Big Apple has a terminal in its back seat, making payment transactions fast, secure and convenient.   This has led to a surge of new business for cab companies, as well as to better tips for drivers.  Check out our video to learn more.

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Posted by: Albert Coscia, Visa Corporate Relations on September 29, 2011 at 12:02 pm

Category: Currency of Progress
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Jul 6, 2011

MIGRATION WATCH: “As Plastic Reigns, the Treasury Slows its Printing Presses”

In an article titled, As Plastic Reigns, the Treasury Slows its Printing Presses, the New York Times reported that the Treasury Department has dropped the production of currency notes to some of the lowest levels in modern times. Production of $5 bills dropped to the lowest level in 30 years, and for the first time in that period, there were not any $10 bills printed. Further, the piece went on to conclude: 

“The meaning seems clear: The future is here. Cash is in decline.”

While the article points to several examples of U.S. businesses that have gone cashless, such as Commerce Restaurant in New York, Airlines and Manhattan taxis, we at Visa also see this trend taking place globally.

-       Hong Kong Taxis recently went cashless – eliminating the need for riders to fumble for cash. 

-       Indian Railways, the largest rail system in the world, brought fare payments online to reduce the interminable lines at train stations across the Country.

-       Small Indian businesses, ranging from high-end retailers to movie theatres, have started accepting cards citing security and convenience as key benefits.

As we continue to innovate new and better ways to pay and be paid, we believe the benefits of digital currency, like speed, security and convenience, will continue to accelerate the use of electronic payments around the world.

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Posted by: Will Valentine, Visa Corporate Relations on July 6, 2011 at 1:08 pm

Category: About Visa, Benefits of Digital Currency, Currency of Progress
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Jun 29, 2011

Introducing “Kiva City”: A New Way to Support U.S. Local Small Business Growth

In the fall of 2010, we announced a partnership with Kiva.org to extend the reach of microlending to more U.S. small businesses. Less than a year later, we are joining together to launch Kiva City, a comprehensive program that will extend Kiva’s Internet-based lending model to communities in need across the nation. Launching first in Detroit, Kiva City is being debuted today by President Bill Clinton on stage at the Clinton Global Initiative America Conference in Chicago. Here are a few words from Kiva President, Premal Shah, on the new program.

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Posted by: Douglas Sabo, Visa Corporate Responsibility on June 29, 2011 at 5:03 am

Category: About Visa, Benefits of Digital Currency, Currency of Progress
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Jun 27, 2011

Serving the Base of the Economic Pyramid

Two and a half billion adults around the world lack access to formal financial services, including 1 billion who have a mobile phone but not a bank account.

But today, a great opportunity exists. Technology is rapidly improving our ability to reach the underserved and provide them with a range of financial services that are convenient to use and appropriate for their needs. This includes more convenient ways to make payments, send and receive remittances, and build and access savings.

Governments and industry both appear to recognize the opportunities to serve the underserved, a shared purpose that is on full display at this week’s 1st Forum for the Development of the Base of the Pyramid in Latin America and the Caribbean, an event organized by the Inter-American Development Bank. The event brought together key regional players from the public and private sector, and I am in Sao Paulo to share my perspective on technology and financial inclusion.

At Visa, we think one of the most valuable contributions we can make in the world is helping to bring more people into the formal financial system. Improving access to financial services and electronic payments is a critical building block to help more people improve their lives and lift themselves out of poverty.

There are plenty of examples of Visa’s products and services that enable financial inclusion. Programs like the Visa Solidaridad card in the Dominican Republic have redefined the way government subsidies are distributed, while helping to bring card acceptance to merchants in the country’s smallest neighborhoods. The Solidaridad card is an excellent example of how prepaid technology can accelerate regional financial inclusion by introducing thousands of new consumers to formal financial services in a gradual and effective fashion. 

In a region where 88% of the adult population has a mobile phone but only 35% has a bank account, this type of infrastructure creates new financial inclusion moments for citizens. Today, the possibilities to narrow the gap between those that are included and excluded are endless. But expanding access to financial services isn’t without its challenges. By putting together the minds and the initiatives of governments, companies and organizations, we can do a lot more than working separately. If new technologies are to reshape the world of financial inclusion, it will be by increased collaboration and joined efforts, such as those on display at 1st Forum for the Development of the Base of the Pyramid in Latin America and the Caribbean.

For more on the event go to http://www.baseforumbop.com/

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Posted by: Jose Maria Ayuso, Head of Core Products, Visa Inc. Latin America and the Caribbean Region on June 27, 2011 at 5:34 pm

Category: Benefits of Digital Currency, Corporate Responsibility, Currency of Progress
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Mar 24, 2011

Above all else: futebol

On a recent Tuesday afternoon over 300 ten-year-old kids packed into a steamy auditorium in a graffiti-bathed industrial part of Sao Paulo to learn about personal finance – the Brazilian way.

Tapping into the soccer crazed culture of Brazil, Visa has created a financial literacy theatre program for children. The 60 minute play centers around two friends. One is a talented young ‘futebol’ player who dreams of playing professionally but knows nothing about money management. The other is as adept at personal finance as his friend is on the field with a soccer ball.

Together they create a riotous performance that not only educates children about the vital life skill of money management, but literally gets them out of their seats shouting with enthusiasm.

This well received performance marked the start of the 2011 season of Visa’s Finanças Práticas theatre program in Brazil. Partnering with the Sao Paulo government, we are bringing this show to 43 different community centers around this sprawling metropolis of 11 million. One futebol fan at a time.

You can see the play in action, assuming your Portuguese isn’t rusty, at: http://practicalmoneyskills.com/video/journal.php

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Posted by: Jason Alderman, Visa Corporate Relations on March 24, 2011 at 1:03 pm

Category: About Visa, Currency of Progress, Financial Literacy
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