In a significant move towards promoting inclusive digital government systems, Visa Inc. (V) has announced a collaborative initiative with the United States Agency for International Development (USAID). This five-year partnership aims to empower governments worldwide to develop and implement robust digital platforms that connect citizens seamlessly with essential local services.
The collaboration strategically leverages Visa’s expertise in digital payments and financial technology alongside USAID’s extensive experience in international development. The partnership envisions fostering economic development in targeted markets by bridging the gap between citizens and government services through digital means. This initiative will particularly focus on supporting small-to-medium enterprises (SMEs), playing a crucial role in economic growth.
The initial phase of the collaboration will focus on regions like Sub-Saharan Africa, Latin America and the Caribbean, and the Caucasus. The partnership also plans to expand its reach to other regions in the future, promoting broader access to digital government services globally.
This partnership builds upon the success of previous collaborations between Visa and USAID. One notable example is their work with Ukraine’s Ministry of Digital Transformation on the Diia app. This app has successfully connected over 19 million citizens with over 120 government services, demonstrating the transformative potential of digital government initiatives. Additionally, the Visa Foundation co-founded the Climate Gender Equity Fund (CGEF) with USAID, supporting a remarkable 1.4 million gender-equitable, climate-smart businesses worldwide.
Chris Newkirk, Global Head of New Flows – Commercial & Money Movement Solutions at Visa, emphasized the transformative power of digital government systems, stating: “Digital government systems can help enhance transparency and efficiency between communities and governments, fostering a more favorable environment for entrepreneurs and economic development.” He further highlighted the shared vision of Visa and USAID, saying, “Through shared interests and goals, Visa and USAID will empower communities with digital and financial literacy and support access to digital systems that will help drive financial inclusion for everyone, everywhere.”
Investors interested in participating in this positive development can explore opportunities through ETFs such as the iShares U.S. Financial Services ETF (IYG) and the SPDR Select Sector Fund – Financial (XLF). As of Thursday’s closing, Visa’s stock (V) experienced a slight dip of 0.24% at $283.07.
This partnership between Visa and USAID holds immense potential to reshape the landscape of government services, promoting inclusivity, accessibility, and economic prosperity across the globe.