Visa (NYSE: V), a global leader in digital payments, has partnered with USSC Money Services Inc. (UMSI), on a strategic issuing and Money Movement partnership to launch Visa Direct in the Philippines. This collaboration marks a significant milestone in enhancing digital payment and remittance solutions in the region.
While often cited as one of the largest remittance-receiving countries in the world, the Philippines remains strong in the outbound money movement market, particularly for business-to-business (B2B) payments. Visa’s “Money Travels: 2024 Digital Remittances Adoption” report reveals that there is a $151-billion outbound market opportunity, the majority of which cover business-related flows. These include supplier payments, export/import, merchant settlement, and overseas procurement for goods and services for many small and medium enterprises (SMEs).
Digital methods are driving cross-border payment growth too. The same report found that 58% of Filipinos prefer digital money movement methods, with many citing high fees, lengthy processing, and the need to visit a physical location as common pain points in making cross-border payments and remittances.
To foster the growth of outbound cross-border business payments in the Philippines, Visa Direct facilitates the transfer of funds directly to eligible Visa Direct cards, bank accounts, and wallets in many jurisdictions around the world. Launched over a decade ago, Visa Direct revolutionizes fund disbursements with its fast, secure, and convenient platform, reaching over 11 billion endpoints across more than 195 countries and territories and 150 currencies.
With Visa Direct, UMSI now enables many of its business clients to make faster and more efficient cross-border outbound payments to support their various business needs.
In addition to this recent partnership with UMSI to launch Visa Direct, Visa and UMSI previously collaborated on an exclusive deal to issue the U Visa Prepaid Card. Geared towards new-to-bank customers from segments such as business process outsourcing (BPO) employees and micro, small, and medium-sized enterprises (MSMEs), the U Visa Prepaid Card underscored Visa’s and UMSI’s shared commitment to boost financial inclusion.
“We are pleased to partner with UMSI to enhance digital remittance and payments services in the Philippines. Visa Direct aims to be Asia Pacific’s premier real-time payment platform by focusing on continuous innovation and expanding collaborations with banks, fintechs, and digital wallets. The increasing use of digital apps for sending business payments abroad highlights the need for secure, fast, and convenient money movement solutions. Visa is dedicated to ensuring safe and efficient money transfers, enhancing the financial resilience of Filipino households, and contributing to economic growth,” said Jeffrey Navarro, Visa Country Manager for the Philippines.
“Cross-border payments and remittances have steadily converged across settlement systems, and USSC is proud to be at the forefront of this evolution in partnership with Visa. This collaboration reaffirms USSC’s commitment to serving its core markets —OFWs and underbanked Filipinos—by delivering convenient and cost-effective solutions that facilitate money movement across borders,” said UMSI President and Chief Executive Officer Jose Xavier Gonzales. “Combining its physical store infrastructure and U Mobile app with a Visa card-based wallet overlay, USSC continues to drive financial inclusion for Filipinos worldwide, helping them shift from cash to digital seamlessly,” he added.
