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Visa Asia Pacific Chairman Chris Clark (centre) gestures during the media briefing yesterday on the global giant’s 35th anniversary in Sri Lanka. Visa Country Manager Sri Lanka and Maldives Avanthi Colombage and Visa Group Country Manager India and South Asia Regional Sales Sandeep Ghosh are also present – Pic by Sameera Wijesinghe
By Nisthar Cassim
Global leader Visa yesterday revealed that digital payments in Sri Lanka would double to $ 14 billion by 2027 and vowed to support greater adoption including in the public sector as it celebrates 35 years of excellence in the country.
Visa estimates digital payments to grow to $ 7 billion by end 2023 and expects a Compound Annual Growth Rate (CAGR) of 20% in the next four years propelling the value to $ 14 billion. Separately ecommerce is estimated to grow to $ 2.5 billion and the number of ecommerce users to grow up to 10.7 million by 2027. To achieve this trajectory, Visa said it is firmly committed to partnering with banks, fintechs, telcos, State-owned enterprises, the regulator and the Government.
“Businesses are transitioning to digital payments. We remain very excited about accelerating this digital transformation. We are going to be further integrating even more advanced technology and experiences into our partnerships,” Visa Asia Pacific Chairman Chris Clark, who is in Sri Lanka to participate at 35th anniversary celebrations, told journalists yesterday.
Present in over 200 countries and territories, Visa has been championing the use of digital payments as they offer unparalleled ease, convenience, security and efficiency.
Visa Country Manager for India and South Asia Group Sandeep Ghosh said for countries like Sri Lanka, displacement of cash translates into multiple benefits – the growth of the formal economy, digital commerce, greater trust, transparency at reduced cost in all forms of money, movement and hours, the ecosystem, leading to financial inclusion and in some form of shape democratisation of credit. At merchant level Visa estimates the cost of dealing with cash at 14% in the South Asian region.
According to Visa, from a personal consumption expenditure, Sri Lanka has some distance to cover in terms of displacing cash with digital payments with less than 25% of expenses of individuals happening through digital means.
Visa also sees great potential in great adoption to digital payments by the SME sector, numbering over 1 million and accounting for 52% of the GDP and generating 45% of jobs. “These small and medium enterprises and small businesses also stand to benefit immensely from digitisation of their payment flows,” added Ghosh.
To support women-led SMEs, Visa yesterday announced a pledge of Rs. 13 million to The Asia Foundation to launch a dedicated program. Visa will provide seed funding to a group of selected women-led SMBs apart from aiding skills development, knowledge sharing and collaboration, as well as promote financial inclusion among women-led small businesses.
“While we commit to bringing the best of products and solutions to this market, we are also deeply committed to financial inclusion. We believe that inclusive growth, access to credit will empower the consumers, the businesses, and the community at large,” said Ghosh.
Rebound in tourism a beacon of hope
Visa’s confidence in growth in digital payments is also linked to the rebound in the tourism sector.
“I was delighted to see that for the month of July inbound tourism numbers have jumped back up to 150,000. So Sri Lanka is making great progress, but still 100,000 short every month of where it was in the early months of 2019,” said Visa Asia Pacific Chairman Clark.
“We are very focused and working hard with all of our partners to promote the return of tourists,” said Clark adding that in the next few months Visa will launch several initiatives promoting sustainable inbound tourism so as to enable Sri Lanka to get back to having over three million tourists.
Visa stressed that the tourism sector benefits significantly from digitisation since delivering enhanced and secure payment experiences to global travellers is key.
To mark the 35th anniversary in Sri Lanka, Visa also announced the formal launch of “Visa Government Solutions” (VGS) thereby partnering with the Government to modernise payment systems, promoting efficiency in making and receiving payments, reducing fraud, and supporting the overarching goal of building a digitised economic framework.
“The Government and State Owned Enterprises can be a huge beneficiary from digitising all forms of tax, transit, toll and transfer payments PS to or from businesses or citizens. By introducing VGS we aim to further strengthen our relationship with the Sri Lankan Government. By helping improve government payment systems, we will continue to demonstrate our commitment to helping the nation’s digital transformation agenda,” emphasised Ghosh.
Visa an intrinsic part of Sri Lanka’s financial fabric
Asia Pacific Chairman Clark described the 35th anniversary in Sri Lanka as a very significant milestone for Visa.
“Visa has become an intrinsic part of Sri Lanka’s financial fabric over these past 35 years. Our vision goes far beyond transactions; our purpose is to uplift everyone everywhere and in doing so, we aim to empower individuals, businesses, and the wider community,” emphasised Clark who also visited Sri Lanka when Visa celebrated its 30th anniversary five years ago.
Clark recalled that all of the payment solutions that Visa provides revolutionised commerce in Sri Lanka. “We have driven economic growth and we have positively impacted so many lives,” he added.
Over the years, Visa has introduced pioneering payment solutions, catalysing the transition from cash to digital transactions among consumers and businesses alike. Visa has been instrumental in digitising crucial sectors such as small businesses and transit and tourism, all essential for growth in the nation’s post-pandemic trajectory to recovery.
Throughout its journey, Visa has built robust relationships with financial institutions, merchants and FinTech partners – an ecosystem of partnerships aimed at strengthening Sri Lanka’s digital economy.
Visa Country Manager for Sri Lanka and Maldives Avanthi Colombage said: “We have personally witnessed the evolution of payment technology, a transformation that deeply resonates with the people of Sri Lanka. Strengthened by longstanding partnerships with financial institutions and banks, merchants and fintech partners, our initiatives to advance digital adoption, foster financial inclusion, and nurture our worth reflects in serving our community as we move towards a digital economy.”
During the pandemic, she said Visa’s dedicated team ensured the uninterrupted digital transactional services serving as a lifeline for businesses and individuals.
“As we set our eyes forward, we are filled with excitement at the prospect of playing an even more impactful role in Sri Lanka’s Digital Transformation. Our vision remains firmly rooted in creating a seamless, inclusive digital economy,” emphasised Colombage.
