With 1.6 billion cards in circulation in 170
countries and territories Visa is in a powerful position to use its
global processing platform and retail payments network to create a
formidable person-to-person money transfer service.
countries and territories Visa is in a powerful position to use its
global processing platform and retail payments network to create a
formidable person-to-person money transfer service.
This is precisely what Visa envisages with its
Visa Money Transfer (VMT) service, first launched as a pilot
project in Ukraine in 2003 and now fast gaining momentum in an
increasing number of countries.
Visa Money Transfer (VMT) service, first launched as a pilot
project in Ukraine in 2003 and now fast gaining momentum in an
increasing number of countries.
“Our approach to person-to-person payments and
remittances is to use our global technology to create tailored
solutions for various countries and apply what we have learned to
expand the service worldwide,” said Visa global head of product
Elizabeth Buse.
remittances is to use our global technology to create tailored
solutions for various countries and apply what we have learned to
expand the service worldwide,” said Visa global head of product
Elizabeth Buse.
The concept of VMT is simple and comes with the
added advantage of convenience, including eliminating the need for
a trip to a money transfer agent’s office. Instead, Visa
cardholders use their 16-digit account number to send to and or
receive money from another Visa cardholder. Depending on their
issuing bank transactions can be executed via an ATM, self-service
kiosk, the internet or bank branch.
added advantage of convenience, including eliminating the need for
a trip to a money transfer agent’s office. Instead, Visa
cardholders use their 16-digit account number to send to and or
receive money from another Visa cardholder. Depending on their
issuing bank transactions can be executed via an ATM, self-service
kiosk, the internet or bank branch.
Since the launch of the VMT service by Ukraine
bank Privatbank the service has been expanded to encompass 46
programmes in 13 countries throughout Europe, the Asia-Pacific
region and the Middle East.
bank Privatbank the service has been expanded to encompass 46
programmes in 13 countries throughout Europe, the Asia-Pacific
region and the Middle East.
The countries are: France, Georgia, Greece,
India, Indonesia, Kazakhstan, Malaysia, Russia, Singapore, Sweden,
Switzerland, Ukraine and the United Arab Emirates.
India, Indonesia, Kazakhstan, Malaysia, Russia, Singapore, Sweden,
Switzerland, Ukraine and the United Arab Emirates.
Notably, transfers are not limited to countries
where VMT programmes are offered. For example, Singapore Post
Limited (SingPost), which in March 2008 became the first postal
service to offer VMT, enables transfers of money to Visa
cardholders in nine countries: Australia, China, India, Indonesia,
Malaysia, Philippines, Sri Lanka, Thailand and the UK.
where VMT programmes are offered. For example, Singapore Post
Limited (SingPost), which in March 2008 became the first postal
service to offer VMT, enables transfers of money to Visa
cardholders in nine countries: Australia, China, India, Indonesia,
Malaysia, Philippines, Sri Lanka, Thailand and the UK.
According to Visa the Asia-Pacific region is
leading the deployment of VMT services with significant momentum
also being experienced in Central Europe and the Middle East.
leading the deployment of VMT services with significant momentum
also being experienced in Central Europe and the Middle East.
The most significant adoption of VMT has been
in India where the first programme was launched in 2004.
in India where the first programme was launched in 2004.
At present 14 banks offer domestic VMT
programmes to more than 60 million Visa cardholders in 150 cities
and towns throughout India
programmes to more than 60 million Visa cardholders in 150 cities
and towns throughout India
In June, Indonesia became the latest
Asia-Pacific country to introduce a VMT programme when the
country’s largest bank, Bank Mandiri made the service available to
its 8 million Visa debit cardholders.
Asia-Pacific country to introduce a VMT programme when the
country’s largest bank, Bank Mandiri made the service available to
its 8 million Visa debit cardholders.
The service enables customers to send money via
the bank’s 3,000 ATMs to any other Visa cardholder in
Indonesia.
the bank’s 3,000 ATMs to any other Visa cardholder in
Indonesia.
In Central Europe Russia has been the most
enthusiastic adopter of VMT since it introduction in 2006 with 16
banks offering it as a domestic money transfer service at over
5,000 ATMs. Of the total, 10 programmes were launched in the first
half of 2008.
enthusiastic adopter of VMT since it introduction in 2006 with 16
banks offering it as a domestic money transfer service at over
5,000 ATMs. Of the total, 10 programmes were launched in the first
half of 2008.
Visa is currently working on technology
infrastructure improvements to support global processing of
card-based remittances.
infrastructure improvements to support global processing of
card-based remittances.
Among new channels are mobile devices with the
first such implementation being undertaken by Halyk Bank, which in
April 2007 became the first of four banks in Kazakhstan to
introduce a VMT service. Halyk Bank’s mobile service will utilise
text messages.
first such implementation being undertaken by Halyk Bank, which in
April 2007 became the first of four banks in Kazakhstan to
introduce a VMT service. Halyk Bank’s mobile service will utilise
text messages.
