Visa, a global leader in digital payments, wants to help more Filipino small and medium enterprises (SMEs) get access to credit, since many still struggle to raise capital even though they play a big role in the economy and have shown they can repay loans.
“SMEs form the backbone of our economy and supporting them helps contribute to overall economic growth,” said Jeffrey Navarro, Visa Country Manager for the Philippines, said at a media roundtable Tuesday.
Small businesses power much of the Philippine economy—making up 99% of all businesses and giving jobs to two out of three workers, said Gareth Jon Parrington, head of Commercial Money Movement for the South East Asia region at Visa, during the same roundtable.
But, Parrington noted, many of them still can’t get the money they need to grow. And Visa, the company that helps people pay and get paid safely, wants to fix that.
In a study, the credit-card giant found that most small businesses don’t get enough support from banks. In fact, they receive less than 10% of business loans.
Many run into problems with cash, expensive card machines, and hard-to-follow bank rules. Nearly half say they’re worried about running out of money, and one-third worry about fraud when accepting cards.
Parrington said that small businesses around the world are short by over $5 trillion in loans every year. In the Philippines, small businesses need $221 billion, but only $15 billion is available to them.
He said many of these businesses don’t have complete paperwork, credit histories, or training in managing money, making it even harder to get bank support.
Women who run small businesses face more struggles—like unfair lending rules and fewer property rights, which limits their ability to use land or houses as loan security. They also have to juggle home and work responsibilities.
But there’s good news: Visa’s research shows that using digital payments helps small businesses grow. In the Philippines, 51% of women-led businesses and 56% of micro-businesses said they earned more after using digital tools to receive payments.
To help more small businesses succeed, Visa set up a $100-million support program through the Visa Foundation. This has already helped nearly 30 million businesses in Asia Pacific, including 10.9 million run by women.
Visa also teaches business owners how to manage money better through its Practical Business Skills program, which includes lessons on budgeting, planning, and using digital payments.
Recently, Visa partnered with CIMB Bank Philippines to launch a special Visa Business Debit Card just for small business owners. This card links to a savings account with high interest, zero fees, free money transfers, insurance deals, and even a credit line they can use to grow their business.
“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.
To help more Filipino small business owners grow and succeed, Visa is also working on new partnerships with three more banks, which will be completed later this year. Veronica Uy
