Visa and USSC Money Services Inc. (UMSI), a one-stop shop for financial services in the Philippines, have launched U Accept, a payment solution that allows micro, small, and medium enterprises (MSMEs) accept contactless card payments using an eligible smartphone.
The solution is powered by Visa Accept and is integrated into UMSI’s uGrow app, a digital platform for entrepreneurs and small businesses. It allows merchants to accept card payments without buying a traditional point-of-sale terminal.
“The Bangko Sentral ng Pilipinas (BSP) welcomes the launch of Visa Accept in the Philippines, underscoring its importance in accelerating digitalization of payments in the country,” said Mamerto Tangonan, BSP Deputy Governor for the Payments and Currency Management Sector.
He said the service could help more MSMEs gain access to digital payment tools while supporting the country’s efforts to expand use of digital payments and financial inclusion.
MSMEs account for more than 99% of business enterprises in the Philippines and generate 67% of total employment. However, the cost of payment hardware, lengthy onboarding, and limited awareness of available solutions have made it harder for many small businesses to accept digital payments.
“With VisaAccept, payments innovation is now within reach of every Filipino entrepreneur, unlocking many opportunities for small businesses through acceptance of secure, seamless payments from both Filipino consumers and tourists traveling to the Philippines,” said Jeffrey Navarro, country manager, Visa Philippines.
Visa research found that 83% of Filipino SME owners reported higher turnover after accepting card payments, while 41% said customers spent more when paying by card. Among businesses that do not currently accept cards, 67% said they would adopt a solution if they received support.
With U Accept, merchants can accept contactless card payments and pay-by-link transactions through the uGrow app, without investing in additional proprietary hardware. The service also provides digital receipts, transaction history, and security and dispute protections associated with Visa card payments.
U Accept complements uGrow’s other business tools, including sales monitoring and inventory management. Merchants can also receive near-real-time settlement through their U Visa Prepaid Card.
“Through uGrow, UMSI creates an ecosystem where small business owners and retailers have secure, more reliable ways to manage their business without the complexity of traditional enterprise systems,” said Jose Xavier Gonzales, president and CEO, UMSI.