Visa Plans to Launch 2 New Tools to Help Small Businesses Get Credit

Visa is doubling down on its efforts to help small and medium-sized businesses (SMBs) in the Philippines. This year, the global payments giant is rolling out two new products aimed at making it easier for these businesses to access credit. The launch is expected before the year ends.

While Visa hasn’t shared the exact details yet, what we do know is that they’re teaming up with two well-known local banks to bring these tools to life. These are traditional institutions, not fintech startups, which signals a focus on working within the existing financial system rather than disrupting it.

The need is clear. Small businesses make up more than 99% of all enterprises in the country, yet many still struggle to get funding from banks. A World Bank report highlights this massive credit gap: SMBs need around $221 billion in formal loans, but only about $15 billion is actually available to them.

One big hurdle is paperwork. Many small businesses don’t have the necessary documents or collateral that banks typically ask for. Without those, they get shut out of formal loans and end up relying on their own savings or informal lenders, which isn’t sustainable in the long run.

Jeffrey Navarro, Visa’s country manager for the Philippines, pointed out that banks are supposed to dedicate at least 8% of their loan portfolios to SMBs. But currently, that number sits at just 4.52%.

Visa is hoping to close this gap not just through traditional banks, but also by supporting new lending models. Gareth Parrington, Visa’s head of commercial money movement for Southeast Asia, mentioned the growing presence of alternative lenders and marketplaces that are building custom financial solutions for small businesses, especially those selling online.

Earlier this year, Visa announced a partnership with CIMB Bank Philippines. Together, they’re launching a business debit card for SMBs, which will come with perks like a high-interest savings account and access to revolving credit. That project is set to go live in the third quarter of 2025.

On a broader scale, Visa is also investing in the long-term growth of small businesses in the region. Through the Visa Foundation, the company has committed $100 million over five years to support SMEs across Asia-Pacific with more tailored financial services.