Lahore (Muhammad Yasir) – Visa, the global payments technology companyand Branch, the most downloaded finance app inAfrica,have announced a partnership that will seevirtual Visa prepaid debit cards offered to over 2 million consumers in Sub-Saharan Africa.
This partnership represents Visa’s broader strategy to collaborate with and invest in rapidly growing FinTech companies that are reaching consumers and merchants not previously addressed by traditional financial services.
As a part of the agreement, Branch will also implement Visa payment services into its platform, to give consumers the ability to make payments using a card or a mobile phone. The move is part of Visa’s strategy to leverage mobile to digitize payments and is expected to pave the way for cash-free payments.
Commenting on the announcement, Visa’s Vice President, Strategic Partnerships, Fintech and Ventures, Otto Williams said,“Traditional barriers such as a credit score and bank account make financial accessibility a challenge for millions of people in Kenya and the region. By focusing on digitizing payments, we aim to build a more digitally inclusive ecosystem. We are confident that our collaboration with Branch will deliver on seamless access to finance for the unbanked.’’
Branch will also offer preferential loan terms to Visa merchants who accept Visa on mobile QR codes in Kenya. Branch will extend this service to additional geographies in Sub-Saharan Africa, specifically Tanzania and Nigeria. The loans will provide merchants with funds to grow their business through supplemental stock, infrastructure investment, and other key operational needs. Loans will be disbursed to Visa virtual credentials attached to merchants’ phones.
“With this partnership we seek to offer value beyond just transactions. We would like to help merchants grow their businessand drive financial inclusion among the small merchant segments that are often unableto accessquick loans.” Williams added.
Branch CEO Mathew Flannery said, “At Branch, we think our innovative mobile financial appwill be able to provide consumers and merchants access to financial services thereby creating a larger and more robust open loop payments ecosystem for all participants. It only makes sense to be working together with Visa to bring world-class financial services to merchants here in Kenya and beyond.”
Branch has helped unlock financial access for thousands of people around Africaandis currently among the most popular loan application channels. With smartphone growth usage at an all-time high, Branch has taken a unique opportunity to build customer-first financial products for people worldwide.
The partnership will among others; grow and differentiate acceptance in Kenya through expansion of merchant lending programs as well as expand Visa virtualcard issuance and usage through Branch loan disbursements.