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Visa increases card acceptance to meet Indonesia’s growing consumer needs.


Makassar, Indonesia, 4 February 2015 – With Indonesia’s increasing economic growth beyond Java island, Visa is increasing card acceptance points in cities such as Makassar to encourage more consumers to use their Visa cards for their everyday purchases – in line with the Indonesian government’s move towards a cashless society.

Bank Indonesia’s National Non-Cash Movement (Gerakan Nasional Non Tunai) underscores the Government’s commitment to move the country to electronic payments as a means to reduce the cost and inefficiency of cash management.

“Given the Government’s emphasis on promoting cashless payments, Visa aims to provide our expertise to grow electronic payments in cities beyond the Greater Jakarta area by working with local financial institution partners and local businesses to expand electronic card acceptance in cities such as Makassar,” said Ms. Ellyana Fuad, President Director of PT Visa Worldwide Indonesia.

“The growth in the use of electronic payment products, such as credit and debit cards, added US$6.4 billion (IDR80 trillion) to the Gross Domestic Product (GDP) of Indonesia between 2008 and 2012, according to a study conducted for Visa by Moody’s Analytics, a leading independent provider of economic forecasting.

“With growing card usage contributing 0.27 percent to Indonesia’s GDP, there’s no denying the benefits of electronic payments, nor the importance of maintaining an open marketplace to encourage competition and innovation within the industry. We can see from the data that the positive impact in economic growth is a direct result of card usage and is tied to the benefits electronic payments offer, including enhanced security, convenience of operating without cash or checks, increased efficiency at checkout and a reduction in the grey economy,” added Ms. Fuad.

Indonesia’s economic growth outside of the Greater Jakarta area has surpassed the national growth. According to Bank Indonesia, Sulawesi Selatan’s economic growth in the thirdquarter of 2014, as measured by the increase in Gross Regional DomesticRevenue (PDRB), was at 8.23 percent year-on-year*.

More than half of Indonesia’s emerging middle class (EMC) population is between 20 to 35 years old and they live outside of Greater Jakarta. They are young, progressive, financially under-served, and their consumption potential – such as a greater tendency to shop online – is widely untapped.

“The growing EMC not only contributes to the growth of the economy in cities like Makassar, but createsa need and business opportunity for both Visa and its banking partners to introduce payment cards that cater to their special requirements and lifestyle,” said Ms. Fuad.

The top six secondary cities outside of Greater Jakarta contributing more than 28 percent of Visa’s payment volume in Indonesia are Surabaya, Bali, Bandung, Medan, Semarang and Makassar.

There were 3.8 million Visa transactions made in June 2014 from these 6 cities, representing 24 percent of all Visa transactions in Indonesia1. Visa’s payment volume from these six cities grew by 18 percent for the first half of 20142.The top categories purchased from these six secondary cities are clothing (15 percent of total Visa volume in secondary cities) and durable goods (12 percent of total Visa volume in secondary cities).The highest number of transactions from these secondary cities is between US$10 to US$253, which shows that more people are now using their Visa cards for their everyday spend.

“Visa’s payment volume in Makassar has been growing at 23% year-on-year4, which is higher than the city’s economic growth. At the same time, Makassar is seeing more tourists coming through the port-town as they head to RajaAmpat. With such huge growth potential, we are excited about the prospects of increasing electronic payments in Makassar through new, innovative solutions, and we look forward to working with local businesses, governments and industry stakeholders to continue to expand and support local economic growth.”

About Visa

Visa is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world’s most advanced processing networks — VisaNet — that is capable of handling more than 56,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, ahead of time with prepaid or later with credit products. For more information, visit usa.visa.com/about-visa, visacorporate.tumblr.com and @VisaNews.

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