Visa is ramping up its support for small and medium enterprises (SMEs) in the Philippines, aiming to break down barriers to financial inclusion and sustainable growth.
Despite comprising over 99% of all businesses and generating 66% of total employment in the country, Filipino SMEs continue to face steep hurdles—particularly in gaining access to capital.
According to a recent Visa study, SMEs in the Philippines receive less than 10% of total corporate loans, underscoring a severe disparity in funding access. Cash flow remains a top concern, with 44% of SMEs identifying it as a key issue, and more than half reporting reserves that wouldn’t last six months.
Further challenges include high costs for payment acceptance hardware, lengthy card application processes, and fraud concerns, which were cited by 33% of card-accepting SMEs.
Globally, the issue is magnified. The International Finance Corporation estimates an annual $5.2 trillion financing gap for SMEs, with East Asia and the Pacific accounting for a large portion. I
n the Philippines alone, there is a stark $221-billion funding demand against just $15 billion in available supply. Despite government mandates to boost SME lending, limited credit histories, informal practices, and low financial literacy continue to hold businesses back.
Women-led SMEs encounter further constraints, including gender biases in lending, restricted property rights, and household responsibilities that limit business management.
However, Visa’s research points to a positive trend: 51% of women-led SMEs and 56% of micro-businesses in the Philippines reported revenue growth after adopting digital payments.
Visa commits $100M to accelerate SME growth
In response to these critical needs, Visa—through the Visa Foundation—has launched a $100 million small business accelerator initiative, targeting SMEs across the Asia Pacific, including the Philippines. The investment focuses on advancing digital financial inclusion, improving access to capital, and stimulating job creation.
This bold initiative has already impacted an estimated 29.6 million SMEs in the region, including 10.9 million women-led enterprises.
It is part of Visa’s broader mission to empower entrepreneurs, complemented by its Practical Business Skills program, which offers training in cash flow management, digital integration, and financial planning.
Driving innovation through local partnerships
Visa continues to forge local partnerships to bring innovative solutions to market. In its latest move, Visa partnered with CIMB Bank Philippines to launch a new Visa Business Debit Card tailored for SME owners.
The card is linked to a high-interest business savings account and offers zero fees, free fund transfers, insurance options, and a revolving credit facility to help entrepreneurs grow their operations.
“SMEs form the backbone of our economy, and supporting them helps contribute to overall economic growth. We continue to work with local partners to bring financial products and solutions responsive to their unique needs,” said Jeffrey Navarro, Visa Country Manager for the Philippines. “We share the government’s vision to help SMEs unlock their full potential through innovation and resilience.”
With a strong commitment and a $100 million investment already in action, Visa is positioning itself as a critical ally in the fight to bridge the SME financing gap in the Philippines and beyond.