USSC Money Services, Inc. (UMSI), an electronic money issuer, has introduced a Visa-powered payment solution called U Accept that enables micro, small, and medium enterprises (MSMEs) in the Philippines to accept contactless card payments and process other digital transactions using their smartphones.

Launched on Tuesday, U Accept leverages near field communication (NFC) technology to turn smartphones into payment acceptance devices, eliminating the need for traditional point-of-sale (POS) terminals. The approach reflects a broader global trend in "tap-to-phone" or SoftPOS technology being deployed across emerging markets, where the cost and infrastructure requirements of traditional POS terminals have historically limited card acceptance among small merchants. The solution will be integrated into UMSI's existing uGrow app, giving merchants the ability to accept both contactless card payments and pay-by-link transactions.

"The collaboration between Visa and UMSI is a gamechanger for Filipino MSMEs, bringing payments innovation to where it can have the most impact to our communities," said Jeffrey V. Navarro, Visa Philippines Country Manager. "With Visa Accept, payments innovation is now within reach of every Filipino entrepreneur, unlocking many opportunities for small businesses through acceptance of secure, seamless payments from both Filipino consumers and tourists traveling to the Philippines."

Visa cited a 2023 survey showing that 83% of the 503 Filipino micro and small enterprise owners polled reported an increase in turnover after they began accepting card payments, while 41% indicated that customers spent more when paying with cards.

The initiative targets a segment central to the Philippine economy — MSMEs account for over 99% of registered businesses in the country — yet one where cash transactions remain dominant and digital payment adoption has been comparatively slower to take hold. The Bangko Sentral ng Pilipinas has been actively promoting digital payments adoption as part of its financial inclusion and digitalization agenda, seeking to grow the share of digital retail transactions and broaden access to formal financial services among underserved populations.

Jose Xavier B. Gonzales, President and Chief Executive Officer of UMSI, said the new payment solution advances the company's goal of reaching more than 12 million customers of Universal Storefront Services Corp. (USSC), as well as millions of unbanked Filipinos. UMSI is an affiliate of USSC, a financial services provider operating in the Philippines.

"This innovation complements our commitment to serve the unbanked across urban centers and remote areas, helping them shift seamlessly to digital, cashless transactions," Mr. Gonzales added.

J. Richard S. Soriano, USSC Chief Marketing Officer, identified complex bureaucratic requirements as one of the key barriers preventing MSMEs from entering the formal economy. He noted that UMSI has streamlined the onboarding process significantly.

"We have been able to develop a process where, in 10 minutes, I can onboard a merchant to accept [contactless payments]," Mr. Soriano said.

He explained that the platform could help informal merchants transition into the formal sector by enabling them to build a financial identity through a digital wallet and transaction history. Merchants will only need to submit either a barangay permit or a business permit to get started, and no onboarding fees will be charged.

— Justine Irish D. Tabile