Addressing Consumer Needs in Remittance Markets

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Addressing Consumer Needs in Remittance Markets

• Philip Yen EVP and GM, Visa Asia Pacific

APEC Symposium 3-4 June 2004
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Addressing Consumer Needs

• Access
• Reliability
• Affordability
• Speed
• Simplicity

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Visa A Global, Regulated Network

• Global reach
• 1 billion cards and beyond
• 877,000 ATMs
• 21,000 members
• Trusted brand
• 35 billion transactions a year
• USD2.9 trillion
• Wide acceptance
• Over 22 million merchants
• Physical and online merchants
• Wide range of payment products
• Credit, debit, prepaid

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Visas Money Transfer Services
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Prepaid Money Transfer Latin America
Mexico
Dominican Republic

• BBVA Bancomer
• HSBC
• BofA and Santander Serfín

• Banco Mercantil HSBC

Colombia

• Banco Caja Social

El Salvador

• Banco Cuscatlan
• Banco Salvadoreño
• Banco Uno

Ecuador

• Banco Bolivariano

Peru

• Banco de Credito

Projects implemented in partnership with La
Caixa in Spain as the MTO
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Majority Find Card-Based Service Better
Comparison Visa-based remittance vs service
previously used
100
100
75
75
72
73
75
76
77
79
50
50
25
25
20
22
16
19
19
18
7
8
6
6
5
4
0
0
Total
Mexico
Dom. Republic
Total
Mexico
Dom. Republic
Senders
Beneficiaries
Better
Same
Worse
Source Market Research study in New York, Mexico
and The Dominican Republic. Coordinated by Visa
April-June 03.
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Card-to-Card Money Transfer - Visa Direct
Visa Direct is a cross-border money transfer
service in EU
Sender
Recipient

• Cross-border money transfer service using Visa
  network
• Allow senders to transfer funds to any Visa
  cardholder
• Once enrolled, Members need only provide a link
  to Visa Direct online to enable customer use

Instruction to send

Visa Direct

Senders Issuer
Recipients Issuer
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Verified by Visa (Internet) - Philippines
Recipient in Philippines
Sender in USA

• Allow Visa cardholders to transfer funds to
  recipient bank account
• Sender authenticated by his card Issuer using
  Verified by Visa
• Recipients bank protected from denial by Sender

VisaNet

Senders Issuer
Recipients Bank
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Meeting the Needs

• Consumers
• Access, reliability, affordability
• Financial Institutions
• Reaching out to new customers
• Regulators
• Visas network meets regulatory standards
• Desire for increased competition
• Different Markets
• Flexibility to tailor Visa money transfers to
  banked, unbanked

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