SAN FRANCISCO - Visa Inc . (NYSE: NYSE:V), a global leader in digital payments, in partnership with the GSMA Mobile for Development Foundation, has announced the Digital Finance for All (DFA) Initiative.
This new collaboration aims to bring digital financial services to 20 million people across Africa, Asia, and Latin America over the next five years. The initiative targets women, smallholder farmers (SHFs), and small business owners who have traditionally faced obstacles in accessing financial services.
Despite a 66% increase in digital payment usage among adults in low- and middle-income countries since 2014, disparities persist. Women in these regions are 20% less likely to have a formal financial account, and SHFs, who produce over 30% of the world's food, often lack access to financial tools such as credit and insurance.
The DFA Initiative will focus on several key areas to improve financial inclusion:
- Development and dissemination of a mobile financial literacy toolkit to facilitate financial education and encourage participation in mobile money services.
- Joint research by the Visa Economic Empowerment Institute (VEEI) and the GSMA Foundation to advocate for financial inclusion and innovate products tailored to women, SHFs, and small enterprises.
- Digital integration of SHFs and small enterprises to promote the use of digital financial services, enhancing their resilience and growth.
- Support for refugees and host communities to achieve meaningful financial inclusion and wellbeing.
Chiagozie Nwabuebo, Vice President of Global Growth & Social Impact at Visa, emphasized the importance of digital payments in providing economic access and building better financial futures for underserved communities. Ashley Olson Onyango, Head of Financial Inclusion and AgriTech at GSMA, highlighted the transformative role of mobile money in advancing financial resilience for the unbanked population, noting that digital and financial literacy is crucial for accessing these services.
The initiative is based on a press release statement.
InvestingPro Insights
As Visa Inc. (NYSE: V) embarks on its ambitious Digital Finance for All (DFA) Initiative, the company's financial health and market performance remain key indicators of its capacity to drive such large-scale global projects. According to InvestingPro data, Visa stands strong with a market capitalization of $569.74 billion, underscoring its significant presence in the financial services industry. The company's robust gross profit margin of 97.78% over the last twelve months as of Q1 2024 reflects its efficient operations and ability to generate earnings.
InvestingPro Tips highlight that Visa has maintained its dividend payments for 17 consecutive years, showcasing a reliable commitment to returning value to shareholders. This is particularly relevant to investors who value consistent dividend growth, which for Visa was 15.56% in the last twelve months as of Q1 2024. Additionally, analysts have revised their earnings upwards for the upcoming period, signaling confidence in Visa's financial performance and potential for continued growth.
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