Visa, GCash to drive financial inclusion in the Philippines

Global digital payments provider Visa and Philippines-based super app GCash have partnered in a bid to drive financial inclusion.

According to previous reports, the launch of the new offering is expected to boost financial inclusion in the Philippines by giving the unbanked population access to the benefits associated with owning a card. 

A contactless card, the GCash Card is addressed to Filipinos who don’t normally pay with cards – both online and in physical stores – and is directed to the segment of the population with no bank accounts, nor the documents typically needed to apply for a card. This demographic group encompasses a wide array of people with informal sources of income. 

Moreover, given that the card is powered by Visa, the new product has a global reach and, thus, can be used for overseas payments in over 200 countries and territories, at more than 100 merchants. The card can also be used for withdrawing cash from ATMs – both domestically and internationally.

As previously reported, the GCash Card can be ordered through the app by any GCash fully verified user. No added documentation or approvals are required. 

GCash allows users in the Philippines to purchase prepaid airtime, pay bills at more than 1,600 partner billers nationwide, send and receive money anywhere in the country and to other bank accounts, and buy from partner merchants and social sellers. Moreover, through the app, users gain access to savings, credit, loans, and insurance services, among others.

The road towards digitalisation and financial inclusion in the Philippines

According to the International Labour Organisation, workers in the informal economy in the Philippines are usually not covered by the country's labour laws and regulations. Even more to this point, as per data from the Labor Force Survey, 38.3% of those employed are in vulnerable forms of employment. 

The Philippine government has taken steps to advance the digitalisation of payments, especially through its Digital Payments Transformation Roadmap 2020-2023 initiative.