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3. Da Nang Smart City Summit| October 2019 Visa Confidential
Agenda
4. Accelerating electronic payments with Government Solutions Visa Confidential
Visa School of
Public Policy
Accelerating electronic payments with Government Solutions Visa Public 4
Government E-Payment Adoption Ranking (GEAR)
• With an overall score of 51.1, Vietnam ranks 14th in Asia Pacific and 62nd across the 73
countries included in the GEAR study. Government is a catalyst to drive e-payment
adoption. Vietnam has the opportunity to build a robust government e payments
platform.
0
20
40
60
80
100
120
Overall C2G G2C B2G G2B
Singapore
Mature Market
0
20
40
60
80
100
120
Overall C2G G2C B2G G2B
Vietnam
Intermediate/ Developed Market
0
20
40
60
80
100
120
Overall C2G G2C B2G G2B
Hong Kong
Mature Market
Citizen to Government (C2G): Public Transit, Private Transit, Pension Contributions, Income Tax Payments,
Payments Platform Functionality for Transaction Services
Government to Citizen (G2C): Income Tax Revenue, Pension Benefits, Unemployment Benefits, Gov’t Social Safety
Net
Business to Government (B2G): Business Income Payments, VAT/ Sales Tax Payments, Business Pension
Contributions, Company Registration and Payment of Fees
Government to Business (G2B): Business Income Tax Refunds, VAT/Sales Tax Refunds, Payments for Goods and
Services, and Disbursement of Loans
• Source: Government E-Payments Adoption Ranking –
2018. (2018, April). Economist Intelligence Unit. Study
commissioned by Visa Inc.
5. Accelerating electronic payments with Government Solutions Visa Confidential
Visa School of
Public Policy
Accelerating electronic payments with Government Solutions Visa Public 5
Consumers cite convenience, wider acceptance and safety as key reasons for this switch.
63%
54%
53%
51%
49%
46%
42%
40%
It is more convenient
It is more widely accepted
It is safe
I feel more comfortable paying with
cashless methods nowadays
It is a more secure form of
transaction
When using cards, I can be sure that
the amount being charged is…
I don’t carry much cash anymore
It is hassle-free
2018
12%
25%
64%
2018
Increase
Stay the same as
now
Decrease
5
Expectations of cashless payment usage Reason for increase in cashless expectation
N=500 N=318
The Visa Consumer Payment Attitudes Study 2018 was conducted by Intuit Research on behalf of Visa to understand the behaviour of digital consumers for the purpose of driving greater electronic payments. The latest
survey was conducted amongst 4,000 consumers in Indonesia, Malaysia, the Phillipines, Singapore, Thailand, Vietnam, Myanmar, and Cambodia.
2 in 3 Vietnamese consumers expect use of cashless methods
to increase in the next year
6. Visa Confidential
GDP Growth*
(basis points)
New jobs
supported#
Bump up in
baseline
productivity
growth*
Bump up in
baseline wage
growth*
Da Nang (to be updated)
Potential benefits of increasing digital payments usage
Da Nang could gain over $72M
in direct annual net benefits
$12M $37M $23M
Estimated catalyst impacts in
Da Nang’s economic activity over the next 15 years
34 basis points 3% increase in
employment
3.1%3.4%
Consumers Business Government
*These are estimated increases in average annual growth rates for each year from 2017-2032
# The employment data represents the total number of new jobs supported between 2017 and 2032.
7. Accelerating electronic payments with Government Solutions Visa Confidential
Visa School of
Public Policy
Accelerating electronic payments with Government Solutions Visa Public 7
Types of Government Payments
Social Benefits
Subsidies/Conditional
Cash Transfers
Disaster Relief
Pension/Social Security
Income Tax Refunds
Grants/Scholarships
Development Loans
Healthcare Benefits
Employee
Wages/Benefits
Procurement (Paying
Suppliers)
Travel
Tax Payments
Social Security/
Other Contributions
Transit Payments
Government Service
Fees
8. Accelerating electronic payments with Government Solutions Visa Confidential
Visa School of
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Accelerating electronic payments with Government Solutions Visa Public 8
How it benefits everyone
• Process savings and efficiencies
• Reduced paperwork,
less labour intensive
• Cost savings through consolidated
payments
• Flexible and
transparent reporting
• Improved cash flow
• Faster delivery of goods
and services
• Improved compliance
Your Agency
• Empowering
• More convenient and faster access to
funds
• Efficient payment method
• Greater security
• Inclusion in the
financial mainstream
Your Citizens
• Improved, more predictable cash flow
• Reduced billing and payment processing
costs
• Efficient payment method
Your Businesses
9. Accelerating electronic payments with Government Solutions Visa Confidential
Visa School of
Public Policy
Accelerating electronic payments with Government Solutions Visa Public 9
A collaborative approach
Working with your agencies and financial institutions to help make electronic
payments a success for your government
Government to Citizen (G2C) and Government to Business (G2B) Payment Flow
11. | Thai Media Visit to Singapore 201911
Visa’s Global Network
3.4BVisa Cards
(as of December 31, 2019)
53.9MMerchant Locations
(Data provided to Visa by financial institution and other third parties)
200+Countries and Territories
(as of September 30, 2018)
15,500Financial Institution Partners
(as of March 31, 2019)
192.1BTransactions Processed by VisaNet*
(as of March 31, 2019)
14. Accelerating electronic payments with Government Solutions Visa Confidential
Visa School of
Public Policy
Accelerating electronic payments with Government Solutions Visa Public 14
Australia: Reduction of cash and checks
Australia’s payment
systems in recent
decades have facilitated
a shift away from
manual processes and a
decline in the use of
cash and checks
Situation
• Cash continues to account for 60% of the number of payments by individuals
• Adoption rate of technologies continues to be slow
• Looking at new instruments and channels to provide more a more efficient and better tailored
government payment processes
Solution
• The choice of Prepaid
• They facilitate the instant exchange and allow payment when bank account details are not know to
the payer
• Universally acceptable – cardholders do not need to have a bank account, be credit worthy and do
not need to be over a minimum age
• Efficiency gains for various parties
Result
Source: Deloitte Access Economics Study – April 2012
For Consumers For Governments
• Time savings: No longer need to visit a bank to cash a
check and wait for the check to clear
• Purchases can be made at retailers, cash can be
assessed through ATMs/branches, payments of bills
• Minimizes administration
• Streamline processes since multiple benefits can be
consolidated onto one card
• Flexibility in payment either individually or on a batch file
transfer basis to many card simultaneously
• Easier to reissue a card in the event they are lost or stole
Deloitte Access Economics produces six highly regarded publications, aimed at giving clients a leading edge by providing key economic data and analysis, in which the
Business Outlook is a quarterly publication aimed at those who require depth of detail about the business environment, analyzing prospects across 22 industries and each of
the Australian States and Territories. Other publications: Investment Monitor, Retail Forecasts, Employment Forecasts, Budget Monitor, Tourism and Hotel market outlook
16. 16 Visa Public
Data Analytics Example - How tourists spend in Vietnam?
Inbound Traveler Spend in Vietnam Metrics per Traveler
Total face-to-
face Spend
&
%Change YoY
Total
Transactions
Total Travelers
Spend per
Traveler
Transaction per
traveler
Average Ticket
Size
Visa Capabilities to Support Vietnam Tourism
17. 17 Visa Public
Data Analytics Example – What are Country A’s top source markets?
Country
TOTAL
Avg. spend by traveler ($)
13%
16%
15%
7%
8%
11%
9%
6%
10%
9%
$2.0 B 14%
Country 1 20%
16%
10%
8%
6%
5%
5%
4%
4%
3%
%spend
share YoY growth Avg. ticket size ($)
Visa Capabilities to Support Vietnam Tourism
Country 2
Country 3
Country 4
Country 5
Country 6
Country 7
Country 8
Country 9
Country 10
18. 18 Visa Public
City 1 City 2 City 3
43%
47%
42%
48%
51%
61%
12%
6%
7%
12%
5%
8%
8%
8%
11%
6%
6%
4%
4%
7%
12%
6%
7%
5%
7%
4%
6%
6%
3%
5%
22%
31%
34%
39%
38%
42%
23%
12%
12%
18%
10%
18%
12%
8%
23%
8%
8%
6%
2%
8%
5%
4%
6%
4%
23%
10%
11%
10%
7%
12%
21%
55%
33%
56%
63%
75%
5%
8%
10%
10%
5%
6%
28%
5%
11%
7%
3%
2%
15%
13%
20%
9%
12%
3%
1%
2%
4%
3%
2%
2%
QsrGeneral Retail GoodsFood & GroceryRestaurantsLodging
46% 8% 8% 7% 5% 34% 14% 11% 5% 12% 37% 7% 18% 13% 2%
Overall Inbound
travelers
Data Analytics Example – Spend Categories by Source Market by City
Visa Capabilities to Support Vietnam Tourism
Country 1
Country 2
Country 3
Country 4
Country 5
Country 6
19. 19 Visa Public
Consumers Insights Example – Vietnam Inbound behaviors
Travel motivations
51%
41%
35%
33%
30%
28%
Bonding
Experience
Rest & relax
Wanderlust
Escape
Indulge
Drivers of destination choice
23%
22%
22%
21%
21%
Has good scenery
Was good value for
money
Number of days I had
available for the trip
Fit my budget
Has a rich culture /
heritage
Av. trip duration
62% stay for 5 nights or less
Travel composition
85% travelled with others
59%: partner
28% friends / colleagues
25% children
Av. travel party size: 4
Visa Capabilities to Support Vietnam Tourism
Survey Methodology: The data is based on 500 interviews in each of the 27 markets in AP, Europe, MEA, and Americas except India, China, Australia and New Zealand, where 1000 interviews were conducted. Online
interviews were conducted between June – July 2017, in all markets, with the exception of Egypt, Kuwait and Saudi Arabia; where interviews were done face-to-face with the assistance of laptops.
20. 20 Visa Public
Consumers Insights Example – South Korea travelers highlights
Next 2 years destination Drivers of destination choice
Japan Hong Kong USA Vietnam Australia
22% 10% 10% 8% 6%
14%
7%
7%
7%
7%
15%
14%
12%
12%
12%
29%
21%
20%
20%
19%
Number of days I had available for the trip
The people I travel with
Easy to get to the destination
Time needed to prepare / plan the trip
Safe and secure
41%
25%
22%
21%
16%
Naver Cafe
Facebook
Hotels.com
Korean Air
Expedia
(373)
Base:
Top 5 websites at planning
Travel guidebook 16%
Relative, family
or friend
11%
Travel Agents/ Tour
operators
9%
Recommendations from
locals
8%
used traditional
sources
Spending intent
Search engines 44%
Other online travel
review websites
20%
Social networking
websites
18%
Travel / lifestyle blogs or
websites
17%
used online
sources
Amount spent last trip
(median)
Amount intend to spend
for next trip
(median)
% change
$1,313
$2,407
83%
In-destination sources
Visa Capabilities to Support Vietnam Tourism
Survey Methodology: The data is based on 500 interviews in each of the 27 markets in AP, Europe, MEA, and Americas except India, China, Australia and New Zealand, where 1000 interviews were conducted. Online
interviews were conducted between June – July 2017, in all markets, with the exception of Egypt, Kuwait and Saudi Arabia; where interviews were done face-to-face with the assistance of laptops.
22. Visa Confidential| Presentation Title | Month XX, Year22
22
UK Poland
France
Spain Italy
SwedenNorway
Czech Republic
New York
United States
Singapore
Toronto
Canada
Chicago
United States
Vancouver
Canada
Edmonton
Canada
India
AustraliaSouth Africa
Brazil
Malaysia
RussiaUkraine
Currently over 150 Transit projects globally, in various phases,
are being supported by Visa
50+ partners aboard
Visa Ready for Transit
20 cities
launched in 2018
Full globalization of the
Visa Transit Frameworks
23. Accelerating electronic payments with Government Solutions Visa Confidential
Visa School of
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Accelerating electronic payments with Government Solutions Visa Public 23
How to tap to pay for your ride Enjoy the following benefits when
you tap to pay with Visa
Skip the queues to
top-up and simply
tap to pay for your
train and bus fares
Add your daily fares
to your Visa card to
receive more out of
your card benefits
Track your journey
and fare history via
the portal, or via
the mobile app
Avoid card clash –
take your Visa card
out of your wallet
Tap your Visa card
on the bus or train
gantry reader
The reader will
indicate Bank
Card Usage
Ho Chi Minh City – Contactless technology in Transit (Pilot)