Visa launches new debit card service

JAKARTA (JP): Visa International launched a new debit card service in Indonesia yesterday to tap into the country's growing number of bank depositors.

Visa International country manager for Indonesia Ellyana C. Fuad said the new product, Visa Electron, debit card was part of Visa International's global program to boost its presence in the Asia-Pacific region.

"Indonesia and Thailand are the first two countries to tap into the region," she said, adding that, in coming weeks, Japan and India would be next.

She said Visa International would cooperate with six domestic commercial banks: Bank Bali, Bank Duta, Bank Lippo, Bank Mashill, BNI and Bank Pos.

The crisis has been a big blow to the country's banking system with the loss of international confidence, and the rupiah's value sharp decline, by almost 80 percent, against the U.S. dollar.

Despite this, Ellyana said, there were 60 million banking depositors who will become Visa International's target market.

She said that Visa International expected to issue 25 million Visa Electron debit cards here in the next five years to serve part of the 60 million banking depositors.

"We expect about 15 percent of total depositors in Indonesia to become our debit cardholders in the next five years," she said.

Visa International's debit card, which is like a credit card, will allow holders who have bank accounts and deposits to settle transactions without cash.

She said the country's political and social uncertainty forced more people to carry out transactions with "plastic money" rather than with cash.

"More people now prefer to have more security to settle their business," she said.

She said that Visa International expected to issue 25 million Visa Electron debit cards in the Asia-Pacific region in the first year.

Visa International has issued 52 million Visa Electron debit cards worldwide with a total transaction value of US$411 billion. (aly)