Visa highlights benefits of commercial cards solutions to banking sector in special forum

Speaking at Visa's 'Small Business Card Marketing Workshop', which was held yesterday in Dubai, Bird highlighted the benefits to banks in offering commercial payment cards as part of their portfolio, providing customised solutions targeted specifically at small businesses and medium enterprises and pointed to the fact that the small business segment is an opportunity which remains untapped and is yet to be drawn on.

'Banks throughout the region who venture into the commercial cards segment with flexible payment solutions for diverse business needs would be taking part in a highly profitable segment of the payment card industry. The sales volume of Visa Business cards worldwide, represented by global small business spend, has reached US$190 billion over a 12-month period, ending June 2006, as small businesses continue to adopt payment solutions that are more convenient and secure than cash and cheques,' said Bird during the workshop.

'In addition to the overall success of Visa Commercial products and services, all Visa regions experienced double-digit growth in commercial sales volume, with the majority registering an annual growth increase of at least 20 percent,' added Bird.

The session benefited more than 20 delegates representing 10 different regional and global financial institutions operating in the GCC and specialising in retail and commercial banking in addition to card solutions. At the workshop, bank participants had the opportunity to learn about Visa's global efforts to promote the use of commercial cards, its benefits to the small business segment and the opportunities which lie ahead for banks offering commercial electronic payment solutions.

'Local and international banks operating in the region can benefit in various ways from commercial payment solutions. Delivering intelligent payment programmes which address business needs allow banks to expand their product offering and gain access to a new customer segment, whose needs were never before entirely met. With commercial cards, they will also benefit from higher retail sales volume potential than with consumer-oriented solutions,'

continued Bird.

Aashish Bhargava, Country Manager - UAE, Visa International CEMEA explained how business-oriented payment solutions could benefit the regional banking sector. 'With the rapid development which the UAE and the entire region are witnessing, commercial activity is growing significantly with increasing numbers of small to medium enterprises in operation. These businesses are seeking payment solutions which will provide an easy, convenient way to purchase goods and services and manage business expenditure.'

'Banks have fared well in developing and promoting retail card payment solutions over the years, which have become relatively sophisticated to meet the needs of consumers. Across the globe, including the dynamic Middle East market, Visa now sees the need to focus on tapping into the high-potential commercial cards sector, which gives rise to opportunities to provide tailor-made solutions to match the needs of businesses,' continued Bhargava.

Visa Commercial cards are business and cash management tools which, in addition to managing procurement, travel and entertainment expenses for small businesses, allow proprietors to efficiently manage cash flow, separate business and personal expenses, streamline payments, and gain visibility into daily business spend. Small businesses can also potentially lower business costs by reducing manual paper-based purchase order processes, enabling negotiations with preferred suppliers and have access to discounts.