Philippines, 29 September 2025 – Visa (NYSE: V), a global leader in digital payments, has signed a memorandum of understanding with the Philippine Guarantee Corporation (PhilGuarantee) to expand credit access and promote financial inclusion for micro, small, and medium enterprises (MSMEs).

Through this collaboration, Visa and PhilGuarantee will explore opportunities to provide credit guarantee schemes for MSMEs, enhance their access to credit through partner lending institutions, and support their digitization via various capacity-building initiatives. This collaboration will utilize Visa Government Solutions, which offers services like disbursement programs, payment acceptance, and financial education, to streamline operations and boost financial inclusion. PhilGuarantee, an agency under the Department of Finance, is tasked with providing accessible and efficient guarantee systems for key government sectors.

MSMEs, which number over 1.2 million and account for more than 66% of total employment^[1], are vital to the country’s economy. However, MSMEs face significant challenges when it comes to accessing capital. A recent Visa study^[2] revealed that 44% of MSMEs highlight cash flow as a top challenge, with over half reporting that their cash reserves would last less than six months. In total, less than 10% of total corporate loans also went to MSMEs, underscoring the funding gap that hinders many MSME owners.

To support MSMEs in the Philippines and other Asia Pacific economies, the Visa Foundation previously launched a $100-million small business accelerator initiative aimed at advancing digital financial inclusion, stimulating job creation, and increasing access to capital for SMEs in Asia Pacific, including the Philippines.

The program is complemented by Visa’s Practical Business Skills program, which equips SME owners with essential knowledge in cash flow management, digital payment integration, and financial planning.

“Our collaboration with PhilGuarantee reiterates our support to the government’s vision to expand financial inclusion – supporting our MSMEs’ contribution to overall economic growth, and they deserve to have access to financial products and solutions that are responsive to their needs,” said Jeffrey Navarro, Visa Country Manager for the Philippines.

[1] Department of Trade Industry, 2023 Philippine SME Statistics: https://www.dti.gov.ph/resources/msme-statistics/

[2] Enabling Small and Medium-Sized Businesses (SMBs) With Access to Funding and Financial Education. Retrieved May 20, 2025. https://www.visa.com.sg/run-your-business/small-business-big-future/enabling-funding-and-education.html