Visa launches new debit card service

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)