Corporate Strategy Case Study

Visa International: Boosting electronic payments in India

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Abstract:
In 2005, Visa’s outlook was distinctly positive due to a growth in electronic payments services in India. Visa, had been witnessing an increase in its sales volume at the rate of 50%. It had introduced new products like Visa Money Transfer for easy remittances; Visa Bill Pay for online payment of utility bills and Visa Mobile top-up for prepaid cards. India was the first country in the Asia Pacific region where Visa Money Transfer was launched.

The National Council for Applied Economic Research report mentioned that the unrealised potential of mid size cities of India, which had low card penetration and affluent population, offered good potential for payments products. The government was planning to introduce an electronic payment system in its expenditure, procurement and purchasing areas. It also wanted to extend the facility of tax collection and other administrative purposes that could facilitate effective use of public funds. Other areas where the electronic payment systems held potential were pensions, e-governance, online ticketing services, prepaid smart cards, kisan cards, inbound tourism, remittances, telecommunications etc. Visa’s challenge was to overcome various challenges like infrastructure, institutional and regulatory provisions in India to boost the electronic payment system.

Pedagogical Objectives:

• To understand the growth and development of credit card industry in India
• To discuss challenges faced by the electronic payment system in India
• To debate on financial strategies followed by Visa.

Keywords : Business Strategy, Electronic Payments, Retail Finance, Core Competence, Finance Case Study, Peripheral vision, Visa, Mastercard, Brand Building, E-commerce, Technology