Visa and the GSMA Mobile for Development Foundation Launch Digital Finance for All Initiative

Rhea-AI Summary

Visa and GSMA Foundation launch Digital Finance for All Initiative to advance digital financial inclusion for 20 million individuals and businesses in Africa, Asia, and Latin America, aiming to bridge the gap for underserved communities.

Insights

Financial Analyst

The partnership between Visa and the GSMA Foundation to promote digital financial inclusion represents a strategic move that could have significant implications for emerging markets. By targeting 20 million individuals and businesses, Visa is not only expanding its potential customer base but also fostering a more inclusive financial ecosystem. This initiative could lead to increased transaction volumes and a broader adoption of Visa's payment technologies, which in turn might enhance the company's revenue streams in the long run.

Moreover, the focus on digital financial services is particularly relevant as the world shifts towards cashless economies. The digitization of small holder farmers (SHFs) and nano, micro and small enterprise (NMSE) owners could spur economic growth within these communities by providing them with access to credit and other financial services. This growth could create a ripple effect, benefiting the broader economies of the participating countries, potentially leading to increased stability and prosperity in regions where Visa is investing.

Market Research Analyst

Visa's initiative with the GSMA Foundation taps into a growing trend of mobile financial services, which have seen a substantial increase in usage in recent years, particularly in developing countries. The decision to provide financial education resources and develop research on financial inclusion could help address the knowledge gap that prevents many individuals from participating in the digital economy. This educational component is essential for ensuring that the adoption of digital financial services is sustainable and beneficial to the targeted demographics.

Furthermore, the initiative's potential impact on gender equality in financial access is noteworthy. By aiming to close the gap between men and women in terms of holding formal financial accounts, Visa could contribute to empowering women economically, which studies have shown can have a profound impact on the overall economic development of a community. This could also enhance Visa's corporate image and brand equity, particularly among socially conscious investors and consumers.

Economist

The DFA Initiative could serve as a catalyst for economic development by integrating underserved populations into the formal financial system. Access to financial services is a key driver of economic empowerment and by facilitating this access, Visa is potentially contributing to a reduction in poverty and an increase in economic activity. The focus on SHFs is particularly significant, as agriculture remains a cornerstone of many developing economies. By providing SHFs with financial tools and services, the initiative could increase productivity and market access, leading to greater food security and higher incomes.

However, it is important to consider the challenges associated with such initiatives, including the need for robust digital infrastructure, the risk of exclusion due to digital illiteracy and the importance of ensuring that financial products are tailored to the needs of these specific user groups. The success of the initiative will depend on overcoming these barriers and creating a sustainable model for financial inclusion that can be replicated in other regions.

The five-year initiative aims to advance digital financial inclusion for 20 million individuals and businesses in Africa, Asia and Latin America

SAN FRANCISCO--(BUSINESS WIRE)-- Today, Visa (NYSE: V), a leading global payments technology company, and the GSMA Mobile for Development Foundation (GSMA Foundation) announced the launch of the Digital Finance for All (DFA) Initiative, furthering Visa’s decades-long efforts to increase access to the global economy for everyone, everywhere. This five-year initiative aims to advance digital financial inclusion for 20 million individuals, including women, small holder farmers (SHF), and nano, micro and small enterprise (NMSE) owners across low- and middle-income countries in Africa, Asia and Latin America.

While digital payments use by adults in low- and middle-income countries is up 66% from 2014¹, women, SHFs, NMSE owners and globally displaced individuals continue to face barriers accessing the digital economy. Women in low- and middle-income countries are 20% less likely than men to hold a formal financial account² and more than 30% of the world’s food is produced by SHFs³ yet most have limited or no access to formal financial services like credit, loans, savings, or insurance⁴.

“At Visa, we believe that digital payments are critical to including everyone in the digital economy by helping provide access to economic livelihood,” said Chiagozie Nwabuebo, Vice President of Global Growth & Social Impact, Visa. “Together with the GSMA Foundation, we seek to empower those in underserved communities across the world and provide equal access to help build better financial futures for all.”

To help improve financial health, the DFA will:

• Deliver financial education resources through a jointly developed mobile financial literacy toolkit that enables easy delivery and scaling across markets to help enable successful access to and participation in mobile money services;
• Develop joint research through the Visa Economic Empowerment Institute (VEEI) and the GSMA Foundation focused on financial inclusion, advocacy and product innovation for women, SHFs, NMSEs and globally displaced individuals;
• Digitize SHFs and NMSEs to support their adoption of digital financial services to enable their resilience and growth; and
• Support meaningful financial inclusion and wellbeing for refugees and the communities who host them.

“Mobile money can play a transformative role in advancing financial inclusion and resilience for the nearly 2 billion people who remain unbanked globally. However, poor digital and financial literacy is a key barrier to accessing digital financial services, especially for certain population segments like women, farmers and micro-merchants,” said Ashley Olson Onyango, Head of Financial Inclusion and AgriTech, GSMA. “We are very excited about our partnership with Visa enabling us to further drive economic empowerment and support millions of users to access life changing financial services.”

For more information on Visa’s commitment to build a more inclusive global economy, visit here.

About Visa Inc.

Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at Visa.com.

About GSMA Mobile for Development Foundation

The GSMA Mobile for Development Foundation, Inc. (‘The GSMA Foundation’) brings together mobile operators, innovators, governments, and the international development community to realise the positive social, economic and climate impact of mobile technology, primarily in low- and middle-income countries. With funding from donors and the GSMA, the GSMA Foundation runs programmes that advance digital and financial inclusion – with a strong focus on gender inclusivity, climate action, humanitarian response, and investment in innovative digital solutions. Since 2007, these programmes have impacted the lives of over 220 million people.

Find out more at https://www.gsma.com/aboutus/who-we-are/gsma-foundation/

Follow Mobile for Development on X: @GSMAm4d and on LinkedIn: GSMA – Mobile for Development
Follow the Mobile Money programme on X: @GSMAMobileMoney

¹ The World Bank (2021), The Global Findex Database 2021
² GSMA (2023), Accelerating Digital and Financial Inclusion for Women.
³ Ricciardi et al (2018), How much of the world’s food do smallholders produce?
⁴ CGAP (2019), Smallholder Households: Distinct Segments, Different Needs

View source version on businesswire.com: https://www.businesswire.com/news/home/20240226678583/en/

Brittany Furia

brittany.furia@visa.com

415-370-9693

Source: Visa Inc.

FAQ

What is Visa's ticker symbol?

Visa's ticker symbol is V.

What is the goal of the Digital Finance for All (DFA) Initiative?

The DFA Initiative aims to advance digital financial inclusion for 20 million individuals, including women, small holder farmers, and nano, micro and small enterprise owners in low- and middle-income countries in Africa, Asia, and Latin America.

Who partnered with Visa for the DFA Initiative?

Visa partnered with the GSMA Mobile for Development Foundation (GSMA Foundation) for the DFA Initiative.

What are the key focus areas of the DFA Initiative?

The DFA Initiative focuses on delivering financial education resources, joint research on financial inclusion, digitizing small holder farmers and small enterprise owners, and supporting financial inclusion for refugees.

How does Visa aim to empower underserved communities through the DFA Initiative?

Visa aims to empower underserved communities by providing access to economic livelihood through digital payments and equal access to build better financial futures for all.