Visa, BCA join forces to offer Visa\/Plus network in Indonesia<\/p>\n
JAKARTA (JP): Indonesia's Visa cardholders, as part of
\nconsumers around the globe, are now able to secure cash advances
\nfrom any Automated Teller Machine (ATM) operated by Bank Central
\nAsia (BCA), one of the country's leading banks. This facility is
\nbeing offered so that Indonesia does not lag behind other
\ncountries in the payment card industry, a system which was
\ncreated some three decades ago.<\/p>\n
Credit cards -- plastic money -- have become an integral part
\nof most people's lives. Whether they are used for credit or
\ndebit, for travel or at home, for purchases or at ATMs, owning a
\npayment card opens up a whole new world of possibilities.<\/p>\n
BCA, with the largest ATM network in the archipelago, has
\ninked an agreement with Visa International, the world's largest
\npayment system, to deliver greatly increased ATM access for Visa
\ncardholders, particularly in Indonesia.<\/p>\n
The agreement allows BCA's 1,800 ATMs to be fully linked with
\nthe Visa\/Plus global network, comprising over 457,000 ATMs in 120
\ncountries.<\/p>\n
Formerly, only Visa plus cards issued overseas could be used
\nto obtain cash advances from BCA ATMs. This service has now been
\nexpanded to include Visa plus cards issued in Indonesia, of which
\nthere are currently more than 1.3 million in circulation.<\/p>\n
In addition, BCA ATMs will also accept Visa Electron cards.
\nVisa Electron, Visa's global electronic deposit access product,
\nwas launched in Indonesia earlier this year, with the first Visa
\nElectron cards due to be issued in a near future. Visa Electron
\nwill be accepted at 48,000 merchants throughout Indonesia,
\nincluding BCA merchants.<\/p>\n
BCA's vice division head of consumer banking, Th. Wiryawan,
\nsaid the new service would assist both domestic and overseas
\nusers.<\/p>\n
\"Through this service, foreign visitors to Indonesia can
\nwithdraw rupiah at any time. ATMs are generally operating around
\nthe clock, 7 days a week. But, as there are still some merchants
\nwho do not take credit cards, cash is needed in some cases.
\nPeople do not have to wait for working hours if they need to get
\nRupiah immediately,\" he said, adding that they would also gain
\nbenefits in exchange rates.<\/p>\n
Withdrawing cash at ATMs can save international travelers'
\nmoney and make it easy to take advantage of favorable exchange
\nrates offered by ATMs, he said.<\/p>\n
Cash withdrawals are usually dispensed in the local currency
\nand debited from users' accounts in their home currencies. This
\neliminates additional currency conversion fees and commissions
\noften assessed by traditional currency exchange bureaus. It is
\nalso often less expensive than changing currency at a hotel,
\nairport or other local currency exchangers.<\/p>\n
\"Now, Visa cardholders, particularly those from overseas, do
\nnot have to carry wads of cash because BCA's ATMs are
\nconveniently located for easy access,\" Wiryawan said.<\/p>\n
Visa International Country Manager for Indonesia, Ellyana C.
\nFuad, said that the exchange rates would be calculated based on
\nthe value of the dealing day or the next working day if the
\ndealing day is a holiday.<\/p>\n
ATMs operated by BCA can be found in many public locations,
\nincluding on street corners, in shopping centers, in lobbies or
\narrival lounges of travel facilities, such as hotels, airports
\nand railway stations, and many other spot in major downtown
\ncenters.<\/p>\n
\"People can easily find the nearest BCA ATM. Just look for the
\nATMs with a Plus sign wherever they are traveling,\" Wiryawan
\nsaid.<\/p>\n
Fuad said BCA's decision to provide ATM access for the
\nVisa\/Plus network carried a tremendous significance for the
\nIndonesian payment industry.<\/p>\n
\"It is vital for any market to provide local and overseas
\ncustomers with easy access to ATMs. The combination of BCA's
\ndomestic strength and Visa's global Plus network provides Visa
\ncardholders with a clear advantage when it comes to ATM access in
\nIndonesia,\" she said.<\/p>\n
Synergy<\/p>\n
Wiryawan said nowadays there must be synergy in most aspects
\nof life, including in marketing.<\/p>\n
\"This is a kind of 'cooptation', a collaboration with the
\nrivals. Working alone as a belief does not exist anymore, that's
\nwhy we cooperate with Visa for synergy,\" he said.<\/p>\n
He said the synergy offered various advantages.<\/p>\n
\"We expect that the local Visa cardholders will enjoy this new
\nfacility and then consider becoming BCA's customers. In addition,
\nthis represents a global partnership,\" he said.<\/p>\n
\"In the world of electronic commerce, networking is important.
\nWe have to optimize our existing ATM network. With a minor
\nadjustment in the software, we can provide this service,\" he
\nsaid.<\/p>\n
This synergy is also evidence of our commitment to providing
\nconsumers with access to world-class banking and payment
\nfacilities, he added.<\/p>\n
\"The basic concept of such synergy is public utility
\nfacilitation. So far, BCA has cooperation with a number of
\ncompanies to assist the public in paying several bills, including
\nelectricity, telephone, mobile phones and credit cards,\" he said.<\/p>\n
He added that through the new service with Visa, Indonesia now
\ncan provides a safe, quick and convenient way to access cash as
\noffered worldwide.<\/p>\n
The only problem that may occur is in ATM's down time.<\/p>\n
\"Out of its 24-hour operations, an ATM will be down about 40
\nminutes. This is for cash replacement.<\/p>\n
BCA also plans to expand its ATM network. We are preparing up
\nto 300 new ATMs to be installed by 1999,\" Wiryawan said.<\/p>\n
Fuad said that such synergy would also accelerate Visa
\nexpansion in Indonesia.<\/p>\n
\"Our major rival is cash money. We want more people to carry
\ncards and substitute the cash. It's more convenient to carry
\ncards than cash,\" she said.<\/p>\n
Wiryawan said there would be transaction fees imposed.<\/p>\n
\"Visa has set US$1.50 per transaction for users with cards
\nissued locally and US$2.25 for users with overseas financial
\ninstitution issuers. BCA will then charge the fees to the card
\nissuers, with customers' bills showing various fee amounts
\ndepending on the rates set by the issuers,\" he said.<\/p>\n
According to Fuad, the transaction fees were set based on
\ninternational standards.<\/p>\n
She stressed that the charges imposed on customers by card
\nissuers would be much lower than the transaction fees.<\/p>\n
\"Sometimes there is even no charge for the customers,\" she
\nsaid.<\/p>\n
There are two types of cards that can be used at a BCA ATM:
\nthe one issued locally and those by overseas issuers.<\/p>\n
\"A credit card issued locally would be served with a cash
\nadvance from the user's credit line. This means the users will
\nowe money to the bank which issue the card,\" said Wiryawan.<\/p>\n
\"Users with cards from overseas issuers will have the
\ntransaction as a debit from an account or a cash advance,
\ndepending on the type of the card,\" he said.<\/p>\n
He said there may be limits on how much cash a user would be
\nable to withdraw or a spending limit set per day.<\/p>\n
Leading<\/p>\n
The two companies are indeed creating solid synergy, as both
\nare prominent leaders in each own's segment.<\/p>\n
Visa is an international brand of payment cards issued by more
\nthan 21,000 member financial institutions around the world. There
\nare over 620 million cardholders worldwide.<\/p>\n
For more than 20 years, Visa has become the world's leading
\nfull-service payment network.<\/p>\n
The number of Visa branded cards in the Asia-Pacific region
\ngrew to a record 112.9 million by March 1998, up by 10 percent
\ncompared to the same period in the previous year. The number of
\ntransactions carried out on Visa branded cards in the region
\nreached 1.18 billion -- an increase of 34 percent year on year.<\/p>\n
Fuad said that Visa controlled 63 percent of the market share
\nin Indonesia's competitive payment card business.<\/p>\n
\"We expect to reach 80 percent of the market share next year,\"
\nshe said.<\/p>\n
She said that there were some 15 million transactions with
\nVisa cards in Indonesia annually, of which 20 percent are made by
\nforeign travelers.<\/p>\n
As the world's best way to pay, Visa is the leading payment
\nbrand and the largest consumer payment system with more volume
\nthan all other major payment cards combined. Visa plays a pivotal
\nrole in advancing new payment products and technologies to
\nbenefit its member financial institutions and their cardholders
\naround the world.<\/p>\n
More than 15 million locations accept Visa cards. Consumers
\nusing Visa-branded cards generated more than $1.2 trillion in
\nannual volume.<\/p>\n
Headquartered in San Francisco, California, Visa traces its
\nhistory back to 1958, when the Bank of America started its
\nBankAmericard program. In the mid-1960s, Bank of America began
\nlicensing banks in the U.S. to issue its Blue, White and Gold
\nBankAmericard. Membership associations were created both in and
\noutside the U.S., and in 1977, the name Visa was adopted
\ninternationally. It was the world's first common identity for
\nmultibank recognition, acceptance and interchange of value.<\/p>\n
BCA was set up in February 1957. Having gone through extremely
\nrapid development in recent years, BCA has also incorporated a
\nnumber of financial-related subsidiaries with leading
\ninternational partners.<\/p>\n
In 1987, BCA became the first bank in Southeast Asia that
\ngained trust from Visa International to distribute BCA Traveler
\nChecks that are accepted all over Indonesia.<\/p>\n
With the support of sophisticated technology, BCA is, up to
\nnow, the bank with the widest ATM network, which covers hundreds
\nof cities in Indonesia. The bank also has overseas representative
\noffices in New York, Hong Kong, Nassau and Singapore.<\/p>\n
New technology also allows BCA to implement an integrated
\nbanking system, which makes it possible for clients to make
\nvarious transactions anywhere by taking advantages of some 800
\nbranch offices and its 1,800 ATM facilities throughout Indonesia.<\/p>\n
Wiryawan said that BCA, which employs over 20,000 people,
\ncurrently has a portfolio of eight and a half million clients,
\nfive million of which are ATM cardholders.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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