CAB and Visa optimize payments to emerging countries

Crown Agent Bank has announced the launch of a partnership with Visa to optimize payments to remote areas of emerging markets. To this end, the bank will benefit from the services of the Visa Direct network to offer cost-effective money transfers, whatever the amount or destination.

FACTS

• Crown Agents Bank (CAB) and Visa have entered into a partnership to improve cross-border payments, particularly to hard-to-reach markets.
• The London-based bank specializing in overseas money transfers will join the Visa Direct network, offering its customers a cost-effective way of sending small sums of money to hard-to-reach areas in emerging countries, for example.
• The Visa Direct network is currently capable of reaching over 8.5 billion points of receipt, including accounts, digital wallets and cards, and is present in over 190 countries and territories.
• CAB customers will therefore be able to benefit from the breadth of Visa Direct, combined with the 100 currencies already covered by the bank's services across more than 700 currency pairs.
• The integration of Crown Agents Bank will take place via the Visa network API.

CHALLENGES

• Making small exchanges profitable: The main aim of this partnership is to offer the bank's customers the possibility of making profitable transfers, even for small amounts sent to remote areas. The bank is thinking in particular of NGOs that may need to transfer funds to these emerging countries, or companies that can make payments of limited amounts to small businesses, freelancers and so on.
• Promoting financial inclusion in developing areas: This partnership also contributes to Visa's mission to offer its customers the best means of paying and being paid. Visa emphasizes that this also means being able to send money to remote areas, whether for humanitarian aid or a transfer to family.

MARKET PERSPECTIVE

• Crown Agents Bank specializes in cross-border payments to hard-to-reach markets. Last year, the bank enabled the transfer of over £9.3 billion in flows to low-income markets, as well as £3.1 billion in aid flows.
• Visa continues to develop its Visa Direct offer, which has over 2,800 user banks. At the end of July, Visa announced a major partnership with Temenos, with the aim of integrating Visa Direct services directly into the banking software offered by the specialist.