Visa, UMSI roll out phone-based card payments for SMEs

Visa and USSC Money Services Inc. (UMSI) have teamed up to launch a new payment solution called U Accept, enabling small businesses to accept contactless card payments through smartphones, without the need for traditional point-of-sale (POS) terminals. The service is incorporated into UMSI's uGrow app and powered by Visa Accept.

UMSI's chief marketing officer, J. Richard Soriano, revealed that there will be no onboarding fee for small merchants, although they will still be subject to the standard merchant discount rate on card transactions. By eliminating the need for POS terminals and rental costs, U Accept aims to provide an affordable entry point for smaller businesses to adopt contactless payments.

Payments are processed in real time, with funds credited to merchants within approximately an hour, offering small businesses quicker access to proceeds and helping them replenish working capital without waiting for settlement. Currently, U Accept supports Visa payments, but the uGrow platform also includes QR Ph. Visa has indicated that the payment environment could eventually accommodate other card brands like Mastercard.

Visa Philippines country manager Jeffrey Navarro believes that this partnership will expand digital payment acceptance among entrepreneurs, providing many opportunities for small businesses. MSMEs (micro, small, and medium enterprises) make up over 99% of business establishments in the Philippines and generate 67% of total employment. Visa's research also found that 83% of Filipino small business owners reported higher turnover after accepting card payments, while 41% said customers spent more when using cards.

Bangko Sentral ng Pilipinas Deputy Governor Mamerto Tangonan stated that the launch would support the central bank's efforts to expand digital payments and financial inclusion, marking an important step towards democratizing digital payments acceptance for more Filipino MSMEs.