Boosting financial inclusion and innovation to drive small business growth in the Philippines

Visa, a global leader in digital payments, is taking bold steps to promote financial inclusion for small and medium enterprises (SMEs) in the Philippines.

Despite contributing over 66% of total employment and accounting for more than 99% of business enterprises in the country, Filipino SMEs continue to face limited access to formal financing and digital tools essential for sustainable growth.

The Credit Access Gap for Filipino SMEs

According to Visa’s latest research, one of the biggest obstacles for SMEs in the Philippines is access to credit. While their role in driving the economy is vital, SMEs receive less than 10% of total corporate loans. A staggering 44% of small businesses report cash flow as a major concern, with more than half stating their reserves would last less than six months.

Beyond funding challenges, SMEs also face high costs for payment devices, complex application processes for accepting cards, and ongoing concerns around fraud prevention—cited by 33% of SME card acceptors.

The Bigger Picture: A $5.2 Trillion Global SME Funding Gap

Globally, the International Finance Corporation (IFC) estimates a $5.2 trillion annual funding gap for SMEs, especially in East Asia and the Pacific. In the Philippines alone, SME loan demand is at $221 billion, while actual lending only accounts for $15 billion. Low utilization of SME financial support is often tied to informal business operations, limited credit histories, and financial literacy gaps.

Women-led businesses face even more hurdles, including social bias in lending practices, lack of collateral due to limited property ownership, and the burden of balancing business with household responsibilities. Yet, the digital shift shows promise: Visa reports that 56% of Filipino micro-businesses and 51% of women-led SMEs saw revenue growth after adopting digital payment methods.

Visa’s Strategic Solutions for SME Financial Inclusion

To help bridge these gaps, Visa—through the Visa Foundation—has rolled out a $100-million small business accelerator program across Asia Pacific, including the Philippines. The initiative aims to foster digital financial inclusion, improve access to capital, and stimulate job creation. To date, it has reached approximately 29.6 million SMEs, with 10.9 million of these being women-led.

Complementing this is Visa’s Practical Business Skills program, which trains Filipino entrepreneurs in digital payment integration, cash flow management, and basic financial planning.

New Partnership with CIMB Bank Philippines

In its latest effort to support local enterprises, Visa has partnered with CIMB Bank Philippines to launch the Visa Business Debit Card. Tailored specifically for SME owners, this new card offers:

• A high-interest business savings account
• Zero transaction fees
• Free fund transfers
• Exclusive insurance offerings
• Access to a revolving credit facility

These benefits provide SME owners with the financial flexibility and tools needed to grow their businesses efficiently.

A Commitment to SME Growth and Innovation

“SMEs form the backbone of our economy and supporting them helps contribute to overall economic growth,” said Jeffrey Navarro, Visa Country Manager for the Philippines. “We continue to work with local partners to bring innovative financial products that cater to their needs. Our goal aligns with the government’s vision, to help Filipino SMEs unlock their full potential through resilience and innovation.”