Transcript Document

Building the payments
infrastructure
Anne L Cobb
President
Visa International CEMEA
What is Visa?
 A global non-profit making association
 Owned by 21,000 banks worldwide
 1.25 billion payment cards worldwide
 $2.7 trillion cardholder in sales volume
 Efficient payment is our business
A brand new IP-based access network
 Replacing disparate protocols and standards with a
consistent network technology
 Guaranteeing new levels of flexibility, reliability and
bandwidth
– Lower operational complexity
– Higher quality of service
– Greater resilience
 Opportunity for new processing services
 Providing low cost transactions
 Local infrastructure limitations will require creative
solutions
Delivering the e-commerce promise
 A substantial, rapidly growing market
 Strategically important to Visa – with benefits for all
participants
 Convenience, security and predictability are being
addressed:
– Thorough merchant monitoring programmes
– A solution is in sight for “cardholder authentication”
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3D Secure technology
Backed by all international payment schemes
Implementation under way in all Visa regions
Economic importance of banking the unbanked
$40,000
Norway
GDP Per Capita ($US)
Switzerland
Denmark
$30,000
Ireland
UAE
$20,000
Canada
UK
Germany
France
Italy
Spain
Saudi Arabia
$10,000
Hungary
Poland
Egypt
Czech Republic
Russia
$0
0
Greece
20
40
60
80
Percent Banked Across Countries
100
Accounting for the costs of cash
 Cash is never free
 An electronic payment system can be ¼ the cost of an
equivalent cash/paper-based system
 Electronic systems liberate aggregate cost savings of
at least 1% of GDP
 Cash/paper based systems have variable costs – per
payment costs are high and stay high
 Electronic systems have fixed costs – per payment
costs reduce with volume
Yielding the economic benefits
 Globally, a 10% shift in electronic payments typically
creates a direct 0.5% increase in consumer spending
 Across 6 Central and Eastern European countries, a
shift in card share of 10% to 50% would lead to:
– Additional consumer spending of $1.5bn to $5.4bn
– Additional GDP of $1.7bn to $8.2bn
Summing up….
 An efficient electronic payments infrastructure is a prerequisite for economic development
 Essential for expanded economic trade
 Brings people into the banking system
 Liberates capital and liquidity
 Convenience, security and efficiency for buyers and
sellers
 Once it is in place the momentum builds
Thank you