According to Reuters,
) has joined forces with the first foreign bank in Sudan - Kenya
Commercial Bank (KCB) - in order to launch credit card services
in South Sudan, according to Reuters. Hit hard by brutal civil
wars, South Sudan has been restructuring its financial system
with the help of various foreign national banks for over 6 years
Accordingly, KCB has gained a license from Visa to offer its
credit cards in South Sudan, thereby reaching out to more than 12
million people in the region. Moreover, associating with KCB will
enable better penetration for Visa credit cards as the bank holds
a 42% market share, serving over 138,000 customers in South
Through this initiative, Visa also aims to gradually reach out
to the bank's customers through automated teller machines (ATMs).
While some outlets have already started accepting Visa credit
cards, KCB expects to introduce Visa payment modes in all the
hotels of the country by the end of 2013.
Visa, through this collaboration, aims to augment its present
endeavor of providing customized and value-added solutions to its
clients. The alliance also gives a competitive edge to the
company's credit card portfolio, given the lack of penetration of
other arch rivals in the African country.
The deal will also accentuate Visa's financials by bolstering
the number of transactions on its network as KCB shifts
additional credit card volume to the former.We expect the deal to
enable both the parties to improve their clientele base and
thereby enhance their respective sales structures.
Furthermore, the alliance will not only improve payment
efficiencies but also maintain security standards, thereby
allowing consumers access to an authentic transaction and
hardware-based display protection. Overall, the alliance
elucidates the rapid progression in the electronic payment
process space, particularly in such untapped, war-hit markets
possessing strong potential.
Along with Visa, its peers such as
) appear impressive at Zacks Rank #2 (Buy).
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