In a move that might endear Visa to Chinese authorities, the global card network announced that it will work with local organizations in China to promote financial inclusion and education through mobile technology. The main focus of the deal will see Visa work with the China Foundation for Development of Financial Education (CFDFE) to bring financial education to some five million people in farming households.
Commenting on the deal, Visa CEO Charlie Scharf said that the new partnership
“demonstrate our full commitment to continuously promote inclusive development and growth and also support the development of financial inclusion in China.”
While Chinese consumers are among the leading users of mobile payment services like Alipay and WeChat among others, outside of major urban areas, education and particularly financial education is significantly lower and so in need of help. The move by Visa is in part surprising given that China’s own network (China Union Pay) could provide the same services but by selecting Visa it could be a sign that the global network is making progress with Chinese authorities.
Overview by Tristan Hugo-Webb, Associate Director, Global Payments Advisory Service at Mercator Advisory Group
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