I recently reported on the state of investment in Eastern Canada on expanding. Apparently the trend continues further north in the remote regions of Canada by Visa. Visa is heading to the northern reaches because as many as 3%, or 1 million Canadians, are not able to access a bank account on a regular basis.
Canada is a fairly progressive society with a mandate to provide internet access to all citizens. All banks in Canada provide internet banking, web based banking, and older school plain old telephone banking.
What will Canadians be able to use the prepaid VISA card for? According to the WSJ, the prepaid VISA card will be used for salary disbursements and government social payments and for paying for everyday expenses, utilities, using the VISA network. Does this sounds like a bank account without bank account?
According to the Canadian Bankers Association 94% of Canadians have a debit card to use at retailers or ABM to make transactions.
Paying a merchant with a debit card in Canada = $0.00 transaction fees applied to the merchant. Paying a merchant with a VISA card in Canada = $$$$$ fees applied to the merchant and paid to VISA/MC.
Why not use a bank account with a Debit Card? Same convenience for the consumer and saves money for the merchant.
More to come…