Capturing New Opportunities
In tandem, while working to sustain growth, businesses must harness opportunities in the region – not least, around ecommerce. Visa believes the focus must be on accelerating ecommerce acceptance with marketplaces offering low-cost acceptance, in order to displace traditional Cash on Delivery as a more attractive payment option for consumers.
Fintech offers another growth area in NALP: here, Visa’s priorities are to partner with top mobile network operators (MNOs). In the B2B (business to business) field, Visa will grow the supply chain with target fast-moving consumer goods businesses and acquirers. Growing virtual cards is also a priority, and Visa will also scale fleet with oil and gas downstream distribution B2B travel. As for BNPL (buy now pay later), Visa will support Global Visa BNPL solutions for both traditional banks and fintech clients in NALP markets, ensuring that every Visa card is enabled with BNPL as a feature, and that it is also available as a payment option from every Visa seller.
Lastly, digitized SMBs (small to medium-sized businesses) offer a significant opportunity. An estimated 70 percent of new value created in the economy over the next decade will be based on digitally enabled platform business models, according to the World Economic Forum12. Conscious of that, Visa will support and promote SMBs’ digitization in CEMEA and in NALP, so that these businesses are best placed to participate in the digital shift and serve consumers.
A Dual Focus for the Future
The way money is used is changing, and at a rapid pace. While there is a clear shift towards new forms of payment, from BNPL to methods incorporating Big Tech, connectivity networks are in various stages of development and maturity across key payments markets. In response, Visa believes that the strategy for NALP must be to keep the focus on those three highlighted fundamentals – data privacy and security; card acceptance; penetration – while being ready to capture emerging opportunities, for the benefit of both consumers and businesses.
As a business, our purpose is to uplift everyone, everywhere by being the best way to pay and be paid, and that translates as a collective challenge. As we engage on getting to our digital destination, we need to innovate to include and grow as we drive more access for the communities we serve.
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1VisaNet data (Domestic and International) Collection Only and Settlement
2Visa Business and Economic Insights, VisaNet
3Visa Business and Economic Insights, VisaNet (data for Q2-2019 to Q2-2022)
4Based on Visa’s Emergent Payment Landscape report
52022: CEMEA’s Year of Economic Recovery, Visa Business and Economic Insights Analysis of Apptopia data; * Saudi Arabia, South Africa and the UAE, business-related apps enable businesses to sell online and establish their digital presence https://navigate.visa.com/cemea/data-and-insights/2022-cemeas-year-of-economic-recovery/
6Analysis of data from Apptopia, Magnitt State of Startup Funding - 2022 Emerging Venture Markets Report, percentage change from 2020 to 2021: https://magnitt.com/research/state-of-startup-funding-2022-50796
7IHS Markit, Visa Business and Economics Insights, Oxford Economics
8World Bank, Oxford Economics
9Visa Business and Economic Insights, Haver Analytics, IMF, Oxford Economics
10Visa Consulting & Analytics customer survey across 12 large CEMEA markets (Q3/2021-Q1/2022)
11VisaNet data, benchmarking of card activity across 10 large CEMEA markets
12World Economic Forum article, ‘Shaping the Future of Digital Economy and New Value Creation’ https://www.weforum.org/platforms/shaping-the-future-of-digital-economy-and-new-value-creation