Visa has launched a new initiative in the Philippines in collaboration with infrastructure provider M2P Fintech and CTBC Bank. The partnership is aimed at enabling rural and thrift banks to issue both physical and digital Visa debit cards. The programme is designed to address longstanding technical and regulatory obstacles faced by smaller banking institutions in offering card-based services.
Under this ‘issuance-in-a-box’ model, Visa supplies a ready-made platform through which rural banks can more efficiently and cost-effectively roll out debit-card programmes. Enrolled banks will also gain access to Visa’s risk and identity tools, including its advanced authorisation and risk-management systems, as well as a dispute resolution platform.
Expanding reach in underserved banking segments
Data published by the Central Bank of the Philippines indicates that rural and cooperative banks hold deposit accounts for more than 24.2 million individuals, while thrift banks serve around 9.7 million accountholders. Despite this, rural and cooperative banks represented just 1.9% of total banking assets in 2024, and thrift banks about 6.1 per cent, according to the Rural Bankers Research and Development Foundation cited by The Manila Times.
The partner banks note that rural institutions are especially important in supporting agriculture, with the rural bank segment extending around 17% of their loan portfolios into the agriculture sector—the highest share among bank types.
This new programme intends to support financial inclusion by enabling banks in remote or under-penetrated areas to participate more fully in the formal banking system.
Representatives from Visa described the collaboration as advancing its efforts around inclusion and innovation in payments for the Philippines’ rural and thrift-banking sector and said that working with the fintech provider and the licenced bank will extend access to secure, seamless digital payments for more Filipinos.
A spokesperson for M2P Fintech highlighted that, by integrating technology with settlement and operations support, the company aims to help local banks boost efficiency and better serve clients. Meanwhile, CTBC Bank officials noted that the partnership is part of a general push to digitise underserved banking segments, particularly in agriculture and small-business banking. This enrolment of rural banks is anticipated in the coming months.
