Visa and World Bank Group Announce New Risk-Sharing Initiative to Expand Digital Payments and Financial Inclusion in Emerging Markets

Visa (NYSE: V), a global leader in digital payments, and the International Finance Corporation (IFC), a member of the World Bank Group focused on the private sector, are partnering on an innovative risk-sharing initiative designed to help expand financial inclusion by increasing access to digital financial services in emerging markets.

Under the agreement, IFC will share credit settlement risk for Visa transactions associated with enrolled financial institutions, enabling these institutions to connect more underbanked consumers and small businesses to digital payments. The facility is expected to support approximately $200 million in risk sharing over five years, with an initial focus on 14 countries in Latin America and the Caribbean and reach approximately 50 financial institutions with below-investment grade ratings.

Together, Visa and IFC aim to help financial institutions enable millions more people and small businesses to save, spend, borrow, grow, and participate more fully in the formal economy.