Visa, UMSI roll out phone-based card payments for SMEs

MANILA, Philippines — Visa has partnered with USSC Money Services Inc. (UMSI) to roll out a new payment solution that allows small businesses to accept contactless card payments directly through smartphones without buying or renting traditional point-of-sale (POS) terminals.

Called U Accept, the service is integrated into UMSI’s uGrow app and powered by Visa Accept. Merchants need an eligible near-field communication-enabled smartphone and basic business documentation to sign up.

UMSI chief marketing officer J. Richard Soriano said there would be no onboarding fee for small merchants, although the standard merchant discount rate charged on card transactions would still apply.

“The beauty of what Visa has developed in partnership with us is there’s no onboarding fee. There’s no hassle to onboard,” Soriano said.

Soriano said the service also removes the rental costs typically associated with conventional POS terminals. U Accept is intended as an entry-level option for smaller businesses, with transaction limits designed to encourage merchants to eventually graduate to more advanced payment solutions as their operations grow.

Payments are processed in real time, while funds are credited to merchants on a near-real-time basis, which UMSI described as within about an hour.

Soriano said faster access to proceeds could help small businesses replenish working capital without waiting one or two days for settlement.

The service currently accepts Visa payments, while the uGrow platform also supports QR Ph. Visa said the payment environment could eventually be opened to Mastercard and other card brands.

Visa Philippines country manager Jeffrey Navarro said the partnership could widen digital payment acceptance among entrepreneurs.

“With Visa Accept, 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,” Navarro said.

MSMEs account for more than 99 percent of business establishments in the country and generate 67 percent of total employment, according to data cited by Visa.

Visa research also showed that 83 percent of Filipino small business owners reported higher turnover after accepting card payments, while 41 percent said customers spent more when using cards.

Bangko Sentral ng Pilipinas Deputy Governor Mamerto Tangonan said the launch would support the central bank’s broader push to expand digital payments and financial inclusion.

“This marks an important step towards democratizing digital payments acceptance, with more Filipino MSMEs set to benefit from improving access to payment innovations,” Tangonan said.