Visa and the International Finance Corporation (IFC), a member of the World Bank Group, announced a partnership for a risk-sharing initiative aimed at expanding financial inclusion and access to digital financial services in emerging markets. IFC will share credit settlement risk for Visa transactions associated with participating financial institutions, enabling them to connect more unbanked consumers and small businesses to digital payments.
The initiative is expected to support approximately $200 million (172.3 million euros) in risk sharing over five years, with an initial focus on 14 countries in Latin America and the Caribbean, reaching approximately 50 financial institutions with credit ratings below investment grade. The two entities intend to help these institutions enable millions of people and small businesses to save, spend, borrow, grow, and participate more fully in the formal economy.
According to the Head of Risk and Customer Services at Visa, Paul Fabara, access to digital payments can help unlock economic opportunities, enabling the delivery of safe and reliable payment solutions to more people and small businesses in emerging markets. The Vice President of Products and Clients at IFC, Mohamed Gouled, highlighted that the initiative exemplifies the power of innovation and partnership in expanding economic opportunities where they are most needed, enabling greater access to digital payment solutions for small businesses and helping them reach new customers, expand operations, and create jobs.
