Visa Extends Support to SMEs Across APAC with Innovative Payment Solutions
Visa aims to address the different challenges faced by SMEs, particularly when it comes to access to capital.
Despite representing over 99% of Philippine businesses, SMEs still struggle with major issues such as limited access to funding, according to a study conducted by Visa.
In fact, 44% of small and medium-sized enterprises (SMEs) cite cash flow as a major concern. They also report that lengthy cardholder application procedures and fraud prevention efforts present additional challenges.
These are the concerns that Visa aims to address with their innovative payment solutions, including a small business accelerator initiative and a new Visa Business Debit Card.
“SMEs form the backbone of our economy and supporting them helps contribute to overall economic growth,” Visa Country Manager for the Philippines Jeffrey Navarro said.
Understanding the Funding Gap
The International Finance Corporation reports a global annual funding gap of $5.2 trillion (around PHP 290 trillion) for small and medium-sized enterprises (SMEs). In the Philippines alone, the funding demand reaches $221 billion (approximately PHP 12.22 trillion), while available financing stands at just $15 billion (about PHP 837 billion).
Women-led SMEs experience additional challenges on top of these, including gender bias in lending and limited property rights that can hinder their ability to use financial collateral.
However, Visa has also discovered that 51% of women-led SMEs and 56% of micro-businesses in the Philippines experienced revenue growth thanks to the adoption of digital payments.
Bridging the Gap With Innovative Solutions
In response to the challenges faced by SMEs, Visa, through the Visa Foundation, has launched a $100-million (approximately PHP 5.58 billion) small business accelerator initiative. This aims to advance digital financial inclusion, stimulate job creation, and increase access to capital for SMEs not just in the Philippines but in the whole Asia Pacific.
Aside from this, Visa’s Practical Business Skills program equips SME owners with essential knowledge, including cash flow management, digital payment integration, and financial planning.
In addition, Visa recently signed a deal with CIMB Bank Philippines to launch a new Visa Business Debit Card. Catering to SME owners, the Visa Business Debit Card will be linked to a high interest business savings account. Through this, SME owners get to enjoy zero fees, free fund transfers and insurance product offers.
“We continue to work with local partners to bring financial products and solutions responsive to their unique needs, and we share the government’s vision to help SMEs unlock their full potential through innovation and resilience,” said Navarro.
