Visa, Western Union, Union Bank prepaid card targets unbanked Pinoys

Money transfer giant Western Union said Tuesday it aims to elevate Filipinos with no bank accounts “to the financial mainstream” through the company’s first prepaid card in the Asia Pacific, which was launched in partnership with VISA and Union Bank of the Philippines.

 

The prepaid card has no minimum maintaining balance, which reflects the company’s intention to give the “unbanked” the financial assistance they deserve, said Drina Yue, senior vice president of Western Union-Asia Pacific.

 

The prepaid card may also used on mobile phones, said Justo Ortiz, chairman of Union Bank of the Philippine. This could be the country’s “first introduction on electronic payments to many people,” he added.

 

Union Bank and global payments company Visa have tied up with Western Union to launch the prepaid card in the Philippines.

 

Mukesh Bubna, prepaid card director for Western Union-Asia Pacific and Japan, said three of every four Filipinos have no bank accounts.

 

The Philippines is currently the fourth largest remittance market globally, making it an “important market for Western Union,” he noted.

 

Multiplier effect

 

Bubna said the prepaid card could boost the bank’s ability to provide loans to government for infrastructure development.

 

“Keeping cash in your wallet does not help economics. When each of us put together (cash), the bank can lend it out to build infrastructures,” he added.

 

The increase in bank capacity to give out loans could have a “multiplier effect” on the economy, said Ortiz, noting however that it would take billions of pesos for the effect to come about. — VS, GMA News