Visa, a world leader in digital payments, and the Tourism & Hospitality Skill Council (THSC), which is overseen by the Ministry of Skill Development and Entrepreneurship, Government of India have inked a Memorandum of Understanding (MoU) for a three-year collaboration with a potential value of $1 million. At a recently concluded event, Jayant Chaudhary, Minister of State (Independent Charge) of India’s Ministry of Skill Development & Entrepreneurship (MSDE) and Minister of State of the Ministry of Education, officially launched an initiative to train 20,000 young people in skills relevant to the tourism industry.
Training young people in 10 states—including Assam, Gujarat, Himachal Pradesh, and West Bengal—to improve the quality of service provided to tourists is the goal of the cooperation, which expands on Visa’s previous work with the Ministry of Tourism. Coursework will center on domestic tourism’s essential occupations, including those of tour guides, customer service representatives, naturalists, and tandem paraglider pilots.
Leaders Comment
At the signing of the memorandum of understanding, Minister Jayant Chaudhary stated that the tourist industry in India could create millions of employment and propel the country’s economy forward. Joining forces with Visa is a game-changer in our quest to tap into this untapped potential, train the next generation to be successful in the tourism industry, and elevate India to the status of a world-class tourist destination. The Ministry’s mutual goal of providing young Indians with the knowledge, opportunity, and support they need to build their futures and make meaningful contributions to India’s progress is at the heart of this partnership.
According to Visa’s Vice Chair, Chief People and Corporate Affairs Officer Kelly Mahon Tullier, the company’s goal is to help young people find better jobs and have a better time while visiting India by providing them with the skills they need to succeed in the tourism industry. By collaborating with the Tourism and Hospitality Skill Council (THSC) and receiving backing from the Ministry of Skill Development and Entrepreneurship, Visa continues to demonstrate its steadfast dedication to India through the cultivation of talent and the endorsement of the government’s goal of elevating the country to the forefront of global tourism.
Visa Wants Further Strengthen India’s Tourism Sector
Visa, India’s largest payment network, has invested heavily in the country’s tourist industry in recent years. The Ministry of Tourism has been able to promote India’s many tourist attractions on a global scale with the help of Visa’s insightful data and analytics, which has increased inbound tourism.
In 2023, the tourist industry in India employed over 42 million people and contributed over $231 billion to the country’s gross domestic product (GDP). As the number of people looking to travel after the pandemic increases, the NSDC-Visa program will help train workers to meet demand, allowing India to realize its dream of being a major tourist destination.
Electronic payments can be defined as a digital transaction between two parties. These payments include ACH, cards, bank transfers, digital wallets, mobile payments, and many more. When it comes to credit cards, the global electronics payment industry is dominated by four giants – Visa, Mastercard, American Express, and Discover.
From these four, it is Visa and Mastercard are arch rivals with distinct product offerings. Both these companies issue payment cards through co-branded relationships. Even as these two companies do not extend credit or issue cards, their product repertoire consists of credit facilities, and debit and prepaid card options are issued through various business partnerships.
Visa and Mastercard, both exclusively operate as network processors and are involved in all three areas of the payments market. The companies have similar business operations, offering payment cards to the public through partner member financial institutions. The member financial institutions issue cards either directly or in partnerships with airlines, hotels, or even retail brands.
Visa Inc.
Visa was founded in the year 1958 as BankAmericard, headquartered in Fresno, California. It was the brainchild of Bank of America’s in-house Product Development team, Customer Services Research Group, and Joseph P. Williams, its leader. In response to its then competitor, Master Charge, the BankAmericard program was licensed to other financial institutions in the year 1966. In the year 1970, Bank of America gave up direct control of the BankAmericard program and formed a co-operative with other various BankAmericard issuer banks to take over its Management. It was renamed to Visa Inc., in the year 1976.
Currently, the world’s second-largest card payment organization, Visa commands a 50% market share of total card payments. In the year 2020, Visa Inc.’s net revenue was a whopping USD 21.8 billion with a payments volume of USD 8.8 trillion. The company’s core product repertoire consists of credit, debit, and prepaid cards as well as business solutions and global ATM services.
How Visa Became The Most Popular Card In The U.S.
Mastercard Inc.
Also an American company, Mastercard Inc. was founded in 1966 in Purchase, New York. The company has an interesting history, with it first being known as Interbank and then Master Charge before settling for its current name. It was created by an alliance of several banks and regional bankcard associations in response to the BankAmericard, which was issued by Bank of America. BankAmericard later became Visa, which is still Mastercard’s biggest global competitor. Mastercard Inc.’s, initial public offering was in the year 2006, when it became a publicly traded company. Before its IPO, Mastercard Worldwide was a cooperative that was owned by more than 25,000 financial institutions.
The year 2020 saw Mastercard Inc.’s net revenue at USD 15.3 billion with a payment volume of USD 6.3 trillion. The company’s core product offerings include consumer credit, debit and prepaid cards, and a commercial product business. Its business segment known as Payment Solutions, is broken as per geographical locations across the US and the world.
Both these companies are known for offering three different card levels. Visa offers traditional, signature, and infinite while Mastercard’s card offerings include standard, world, and world elite.
Common Benefits
When it comes to credit card product comparison of Visa and Mastercard, it is only fair that the product offering of both companies is compared on similar grounds. Some benefits are common to both, some existing due to federal regulations while others have become industry standards, expected by issuers to be provided for their customers.
Zero Liability Protection
Both companies protect their user base against unauthorized charges. In the event a credit card has been used for fraudulent purchases, the user can report it to the issuer and have the card blocked and the transaction reversed. In such a scenario, the charges are borne by the card company.
Visa – Report a Lost or Stolen Card
Cell Phone Protection
This is also a service that is provided by both companies. Visa Signature members can get cell phone protection each month when they pay their wireless bill with their Visa card. On the other hand, World Mastercard offers a USD 1000 yearly coverage on cell phone protection in the event of a cell phone gets stolen or needs certain repairs, when the phone bill is paid with World Mastercard.
Global Emergency Services
Although both companies offer this service, Mastercard offers it for every card level available anytime, anywhere, and in any language. This helps in replacing a stolen card, access of cash advances, etc. Visa offers travel and emergency assistance services for Visa Infinite card holders that provide help in an emergency across the world.
Mastercard – Global Emergency Services
Other Benefits
Visa
Visa offers three tiers of credit cards to its customers – Visa Traditional, Visa Signature, and Visa Infinite. Visa Signature and Visa Infinite offer maximum benefits and perks. However, on the whole, Visa offers more benefits than Mastercard.
a) Purchase Protection and Insurance offers additional benefits to Signature and Infinite card users that include lost luggage reimbursement, trip delay, cancellation, and interruption reimbursement, extended warranty protection, zero liability protection, etc.
Benefits of Visa Infinite
b) Visa Signature Luxury Hotel Collection offers its members special status at more than 900 participating hotels. This allows members access to seven premium benefits that include the best available rate guarantee, automatic room upgrade on arrival if available, complimentary in-room Wi-Fi when available, complimentary breakfast for two, USD 25 food or beverage credit, VIP guest status, and late checkout upon request.
Visa Signature Luxury Hotel Collection
c) Travel benefits for Signature and Infinite card members that include, Global Entry statement credits, Priority Pass lounge access, special Visa Signature offers, and rental car privileges.
d) Emergency Services that Visa provides for its members include important services like roadside dispatch, lost or stolen card reporting, emergency replacement, emergency cash disbursement, etc.
Mastercard
Mastercard too offers three different tiers of credit cards, with each one offering benefits and perks. The three different card categories include Standard, World, and World Elite. Below are some common benefits offered by Mastercard.
a) Purchase Protection and Insurance which is offered by all three cards with World and World Elite cards offering the most benefits. These include Mastercard ID theft protection, cell phone protection, global emergency services, etc.
Benefits of World Elite Masterclass
b) Concierge Services is offered by World Elite Mastercard which can schedule restaurant reservations, and event tickets, or even help in purchasing items that are hard to find. There is no user fee attached to this card. World Mastercard users can use Mastercard Airport Concierge and special Golf Concierge service through Priceless Golf.
c) Mastercard Luxury Hotel and Resorts Portfolio gives World and World Elite Mastercard members access and upgrades at more than 3000 properties across the world. Depending on the property, the amenities can vary, offering complimentary daily breakfast, amenity credits up to USD 100, and other perks.
Mastercard’s Travel and Lifestyle Services
d) Luxury Event Deals offer access to many luxury events like special access to PGA Tour gold outings, access to Priceless Experiences that include film festivals and cooking lessons from private chefs, and many others.
The Better Card – Conclusion
Both Visa and Mastercard offer several advantages, some mandated by rules and regulations, others as industry norms demanded by end consumers. Each one has its benefits that appeal to individual consumers. While it is difficult to pinpoint a clear winner, both these companies are world leaders in their operational sectors. Depending on individuals and the benefits that most suit them, credit cards can be chosen.
FAQs
When was Visa founded?
Visa was founded in 1958.
When was Mastercard founded?
Mastercard was founded in 1966.
What are the three cards offered by Visa?
Visa offers traditional, signature, and infinite credit cards.
What are the three cards offered by Mastercard?
Mastercard’s card offerings include standard, world, and world elite.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Chime.
Businesses in the banking and financial sectors are increasingly focusing on mobile devices as a means of increasing consumer engagement and streamlining processes. The extensive use of mobile devices and the quick acceptance of mobile banking as a practical substitute for the expensive cost of completing transactions in physical branches is a big appeal for financial executives. As a result, the banking industry has been actively incorporating mobility into its client interaction strategy.
Mobile banking is the concept of doing monetary operations via a smartphone. Some financial organizations, particularly banks, provide this service. Customers and users of mobile banking can complete a variety of transactions, which may differ depending on the financial institution.
Chime is a company that creates mobile financial and banking platforms to provide banking services on the move. Users may avoid costs, save money, and lead better financial lives thanks to the company’s platform, which sets a predefined amount of funds away in savings following a payment and generates income from transaction fees paid by the merchants.
Chime Financial, Inc. is a financial technology business based in the United States that offers fee-free mobile banking services through The Bancorp Bank or Stride Bank, Visa debit or credit cards are provided to N.A. account holders, who also have access to secure online banking platform through the business’ website or smartphone apps.
Chime is not a bank, and its customers do not have any banking relationships. Chime may and does deactivate user accounts with no warning; it is not obligated to give the client a cause for the termination or even have one. Customers cannot file a complaint with banking regulators to get their deposits back since they might not be paid out right away.
Chime doesn’t have any physical branches, doesn’t impose overdraft or monthly payments, and doesn’t ask for an initial deposit or a minimum amount to start a free bank account. At present the accounts are only accessible to persons with private accounts; all money received must be in the name of the personal account holder.
The following are some features of the app:
A thorough dashboard snapshot of their expenditures and account balance.
Automatic savings account contributions.
Early payments via direct deposits.
Zero overdraft charges
There are approximately 60,000 ATMs in the US, yet none charge fees for withdrawals.
Instantaneous payments to other Chime users.
Chime – Industry
The term “financial services” refers to the monetary services provided by the banking sector, which comprises a wide range of companies that balance a budget, which includes credit unions, financial institutions, individual asset managers, card companies, insurance providers, accounting firms, consumer finance firms, brokerage firms, investment funds, and some govt-sponsored entities. Several other businesses that depend on credit and loans to function are supported by financial services. Despite mixed findings, the majority of estimates place the financial services industry at 20–25% of the global GDP.
With a compound annual growth rate (CAGR) of 9.7%, the worldwide financial services market increased from $23,319.52 billion in 2021 to $25,588.3 billion in 2022. Economic sanctions on many nations, a rise in commodity prices, and disruptions in the supply chain as a result of the conflict between these two nations have all had an impact on several markets throughout the world. At a CAGR of 6.9%, the financial services industry is anticipated to reach $33,358.77 billion in 2026.
Chime was founded by Chris Britt and Ryan King in the year 2013.
Chris Britt & Ryan King | Founders of Chime
Chris Britt
Chime is a San Francisco-based firm that Chris Britt co-founded in 2013 as a no-fee mobile banking app and debit card. Chris attended Tulane University to earn his degree. At Visa, Inc., he held the position of senior product leader. Before establishing Chime, he previously worked for a company called Green Dot Corporation.
Ryan King
Ryan is Chime’s Co-Founder and Cheif Technological Officer. Ryan was previously the VP of Engineering at Plaxo, an early professional social networking pioneer bought by Comcast Interactive Media. Ryan formerly previously served at Microsoft and Liberate Technologies. Ryan has bachelor’s and master’s degrees in computer science and engineering from UCLA and Stanford University, respectively.
Some other team members include :
Dennis Yu – Chief of Staff
Jeff Trudeau – Chief Information Security Officer
Russ Branzell – CEO/President
Adam Burde – Sr. IT Systems Engineer
Amine Asmerom – VP, Controller
Arkadiy Tetelman – Head of Application & Infrastructure Security
Beth Steinberg – Vice President, People & Talent
Jay Parekh – VP, Business Development & Partnerships
Ori Dugary – Vice President of Operations, Member Experience
Chime – Startup Story
Regardless of its importance, the covid outbreak and quarantine had an impact on every aspect of society as it turned our existence upside down. In spite of the fact that it is a huge aid, most individuals became hesitant to visit bank offices. Despite the fact that banks were open during the lockdown, people started switching to other options. In the field of online transactions, the majority of banks have noticed a noticeable improvement of about 40%. With the help of various banking and UPI applications, people were increasingly using the internet to exchange money and pay their bills. Many banks have been inspired to adopt this shift by the US-based banking company Chime.
Chris Britt and Ryan King founded Chime in 2013, and the company is based in San Francisco. The formal debut was on the Dr. Phil Show on April 15, 2014. Chime stands out since it was founded in the era of smartphones. As a result, they were able to launch an app right away for the convenience of the user. It is simple for clients to use for monitoring their financial standings. They can manage their credit cards and get their questions answered by customer service representatives.
The environment that Chime has developed for its customers is actually establishing new standards for banking services. The company’s absence of branches is quite intriguing and sets them apart from its opponents. They provide Visa debit cards and access to an online banking platform through chime.com for account holders. The clients have the option of doing their business using an Android or iOS mobile application.
Chime – Name, Logo, and Tagline
Chime Logo
Chime’s tagline says “It’s your money. It’s your life. Chime in.”
Chime – Mission, and Vision Statement
Chime’s mission statement says, “We created Chime because we believe everyone deserves financial peace of mind. We’re building a new online bank account that helps members get ahead by making managing money easy. It’s your money. It’s your life. Chime in.”
Chime – Business Model
By charging its customers’ interchange fees on transactions they complete through the Visa payment gateway, Chime generates revenue. ATM fees and interest on cash are other revenue sources for Chime.
Exchange charges – The interchange fee model is where Chimes makes the most money. This stream covers the costs that Chime’s affiliate retailers incur while using its network to process transactions. The business is responsible for paying a processing charge to Chime each time a Chime user swipes their Visa card.
Chime receives a portion of the 1.5% cost that merchants pay to Visa, which is far less than the processing fees charged by other legitimate credit card providers like Amex. Chime generates a sizable amount of revenue from the roughly 40 transactions every month that its millions of customers perform.
Chime leverages its merchant revenues to give customers a better experience by doing elimination of account fees, ATM fees, and other expenses connected to traditional banking.
Interest on money – Chime users may use the app to invest in savings accounts and other financial instruments.
Users’ money is transferred into a high-yield savings account through the automated savings option. Chime makes short-term loans of this money to banks and other financial organizations. Chime earns interest on the cash as payment for the loan at an interbank rate that is far higher than the 0.5% APY that users receive on cash balances in their accounts.
ATM fees – VPA and MoneyPass are two of Chime’s ATM networks. Consumer pays $2.50 for each ATM withdrawal if they use an ATM outside of this 38,000-location network.
Additionally, ATM providers may impose additional fees at their discretion. Up to 20% of Chimes’ earnings come from ATM revenue.
Chime – Funding, and Investors
Date
Round
Amount
Investors
Aug 13, 2021
Series G
$750M
Sequoia Capital Global Equities
Sep 18, 2020
Series F
$533.8M
–
Dec 5, 2019
Series E
$700M
DST Global
Mar 5, 2019
Series D
$200M
DST Global
May 31, 2018
Series C
$70M
Menlo Ventures
Sep 27, 2017
Series B
$18M
Cathay Innovation
May 19, 2016
Series A
$9M
Aspect Ventures
Nov 5, 2014
Series A
$8M
Crosslink Capital
Aug 30, 2013
Seed Round
$3.8M
–
Chime – Acquisitions
Acquiree Name
About Acquiree
Date
Amount
Charlie Finance Co.
Charlie Finance is a financial services company that helps ordinary Americans worry less about money and get out of debt faster
Aug 16, 2021
–
Pinch
Pinch makes it easy to build its clients’ credit history just by paying their rent.
Sep 17, 2018
–
Chime – Competitors
Chime is a market leader in fintech, but it faces stiff competition from other companies that operate in the same industry.
The company’s main rivals as a digital bank include Dave, Marcus, Ally Bank, and Varo Bank. Chime relies on its partner banks, Stride Bank and The Bancorp Bank, as each of them does have a charter. Chime may provide FDIC-insured deposits to its clients on all balances and assets kept with the new bank, just like its rivals.
Chime – Future Plans
Chime’s bank accounts are guaranteed up to the typical maximum deposit amount of $250,000. The Bancorp Bank or Central National Bank, which changed its name to Stride Bank, N.A. in 2019, is their main collaborator. The accounts on Chime are also managed by Stride Bank or Bancorp Bank. Chime does not seek to push credit on its clients, in contrast to conventional banks that encourage customers to acquire overdraft assurance and advances. Additionally, they are not required to maintain a base balance, incur monthly costs, or pay overdraft fees. The business provides customers with discounts or money back at the time of purchase through its money-back rewards program.
Chime has become one of the most popular and effective digital banking apps in the United States over the years. The organization has so far raised 2.3 billion dollars of funding and is currently valued at $25 billion (2021). It reported an estimated profit of close to $200 million in 2019. In order to maintain its leadership position among challenger banks, Chime also plans to expand into Visa and trading services.
According to Chime’s CEO, the firm bases its products on four fundamental aspects of sound monetary planning: spending, saving, managing credit, and investing. In order to help people with little to no credit manage their finances better, Chime will continue to create programs that offer tools and information.
FAQs
Who is the CEO of Chime?
Chris Britt is the CEO of Chime.
Is Chime owned by Amazon?
No, Amazon doesn’t own Chime.
How much is Chime valued?
Chime has raised a total of $2.3 Billion and is valued at $25 Billion.
The article is contributed By Mr. Yash Dubal, Director, A Y & J Solicitors, London, UK.
The UK Government has unveiled a range of measures to entice talented Indian workers but has made life more difficult for some entrepreneurs and investors.
Recently, the British immigration system introduced several significant changes designed to attract ‘the brightest and best’ migrants from around the world. The aim of the policy changes is to boost UK productivity, making the nation more competitive.
One of the most significant updates is the introduction of the highly anticipated Scale-Up visa route on August 22. This is targeted at highly skilled graduates wishing to work for UK companies with an annualized growth of at least 20% over the last three years and at least 10 employees at the beginning of the period.
The Scale-up visa holders will be able to change employers after six months of working for their initial sponsor company, unlike workers on Skilled Worker visas who can only work for their sponsor.
The Scale Up visa application process is anticipated to be easier than the current system for Skilled Workers. Candidates must speak English proficiently and have a job offer that is at the graduate level or above with a £33,000 per annum salary, or the going rate for the job, whichever is higher.
The visa lasts for two years and can be extended for a further three if certain criteria are met. After five years’ continuous residence, an application for permanent settled status can be made, providing certain conditions are met.
Another option for talented individuals wishing to work in the UK is the High Potential Individual (HPI) visa, which is opening for applications from 30 May. This ‘elite’ visa route is aimed at applicants who have gained a bachelors or postgraduate degree from a top-ranking university. The list of qualifying universities will be compiled annually by the UK Home Office – the UK government department in charge of immigration. Generally, post-grads from institutions in the top 50 Times Higher Education World University Rankings, Quacquarelli Symonds World University Rankings and The Academic Ranking of World Universities will qualify. Candidates will also need to speak English proficiently and can sponsor dependents.
The visa will allow high-flyers to work in any full-time job at any skill and pay level but is not a route to settlement.
While the HPI and Scale Up visas are squarely aimed at attracting highly qualified individuals to boost the UK’s tech, digital and fintech sectors, there is also a new route for business people. The Global Mobility visa offers several options for workers going to the UK on temporary business assignments. There are sub-categories for graduate trainees, service suppliers, seconded workers, managers and specialists transferring from overseas branches and senior employees deployed to the UK by Indian businesses to expand their UK presence. These routes open from 11 April 2022.
While these new routes aim to poach talent from other nations, other well-established visa routes have been closed. The controversial Investor or ‘golden’ visa was closed earlier in the year following concerns it had been used as a way of bringing dirty money to the UK to be laundered.
The Sole Representative Visa route has been closed for initial applications from 11 April 2022, and also the Intra-Company Transfer route. These closures create real problems for businesses in India wishing to expand into the UK, for which Global Mobility routes are unsuitable. In these cases, A Y & J Solicitors, an expert immigration legal practice based in London, has pioneered a new, legal process called Self-sponsorship.
This innovative idea allows those with a genuine intention to open a business in the UK a route to realise their ambitions. The process involves establishing a UK company, and then applying for a sponsor licence, which allows that company to sponsor an overseas worker on a Skilled Worker visa. That skilled worker will be the applicant, who, in effect, will be sponsoring themself to work in their own company. Under this scheme, after five years the visa holder may also qualify for residency and after six, for citizenship. They can also take spouses and children under 18.
There are big changes in the UK immigration system over the next months and the advice offered is to seek legal help from a reputable immigration expert when weighing up the possibilities of emigrating.
The biggest digital payment brand, dominating the whole digital transactions companies around the globe, is Visa. Visa Inc. is widely famous across the globe and serves over 200 countries and numerous territories. Visa facilitates dozens of services at a broad level to the individual consumers, financial institutions, governments, and merchants. It offers authorization, settlements, and clearing services in the smoothest manner.
Visa Inc. does not issue debit or credit cards although it does authorize the service of debit, credit, and prepaid cards to the enterprises as well as consumers. Visa gains its most profitable deals by selling services to various financial businesses and merchants, acting as the middleman. Visa’s biggest business strategy comes from expanding its presence to various digital payments, E-Commerce, and others. The biggest rival to Visa is Mastercard Inc. and PayPal Holdings Inc. in the market. In this article, we will discuss the business model of Visa and how it makes money! Let’s get started.
Visa Inc. is a prominent global digital payment company that acts as the middleman in facilitating consumers, financial institutions, government, and other businesses. Visa’s services are available in more than 200 countries and territories across the globe.
The American multinational corporation, Visa works as a financial services provider headquartered in Foster City, California, United States. Visa was founded by Dee Hock in 1958 as the BankAmericard.
Visa is known as the second-largest debit and credit card payment corporation, after China’s UnionPay. This data is based on the number of card payments made and the number of card issues of the company, annually. Apart from this, Visa is the leading banking card company in the whole world, dominating around 50% market share of the entire card payments.
Where does Visa Operate?
Visa is a global payment company that serves more than 200 countries and territories, worldwide. It’s four secured data centers operated in Highlands Ranch, Colorado; Singapore; Ashburn, Virginia, and London, England.
Key Products and Services of Visa
Visa Inc. offers tons of services to its consumers such as clearing, authorization, and settlement services. Its major services and products are:
Services: Clearing, Authorization, and Settlement services. Moreover, mobile payments, top-up services, and money transfers.
Products: Visa provides its allotted credit cards, commercial cards, debit cards, prepaid cards, and other mobile and money transaction-based products.
Visa majorly targets the people with a good income to spend and those who need credit points. The company targets its consumers through various channels such as banks or other financial institutions.
The digital payment company believes in providing consumers with the utmost convenience of its stakeholders.
Business Model of Visa
Visa logo
Visa functions on a pretty different business model as compared to the conventional models. Who doesn’t have a Visa card nowadays? But it’s pretty amazing how its business model functions. The digital payment company, Visa is a publicly-traded company that comes in the listing of the New York Stock Exchange.
Visa follows the Multiple sided platform- business model. It functions by spreading its card services everywhere. And the maximum the customer through a Visa card makes will be accepted by the merchants and vice versa.
Visa mainly focuses its marketing campaigns on the customers holding Visa’s card and are the subsidy side of the company. Visa provides the best facilities for payment to consumers, businesses, and government organizations. In a further manner, Visa uses a proprietary transaction processing network of technology.
What is unique about the Business Model of Visa?
Visa’s mode of generating revenue is entirely different from any other organization. It functions with an open-loop system and follows a transaction-centric business model.
Visa’s business model is based on connecting the consumers to the business owners as the middleman. Visa’s revenue generation isn’t based on the money made by the discount offers of merchants or consumer’s membership fees for issuing the card.
Visa functions as a transaction-centric business model where it earns its revenue through the payments as well as transaction volume done from its personalized cards.
Visa charges little transaction fees from the merchants. Let’s suppose there is a certain amount the consumer transacted to the merchants. So around 2-4% of the total will be merchant fees. That 2-4% will be split between the consumers and the organization, based on the interchange fees. There is always a high risk of default payment by the consumer but the person with a Visa card keeps more generated money from the merchants.
Visa generates its revenue from transactional processing, payment volumes, and value-added assistance including dispute management, issue processing, value-added information services, loyalty services, and many more.
The revenue is distributed in four streams as Service revenue, International transitional revenues, data processing revenue, and other sources of generating more revenue.
Conclusion
Visa is an excellent digital payment company when it comes to serving customers promptly. Although it does make it the second-largest digital payment company after UnionPay of China. But apart from that, Visa is the first choice of everyone across the globe. It offers tons of amazing services to merchants, financial institutions, and others. Through this article, we got the knowledge on how the company makes its money as well as its business model. Stay tuned for more updates!
During the administration of Donald Trump, the United States of America had barred a lot of Visas and had bought a lot of regulations on the immigration by the foreigners to the country. People from all around the world found it difficult to immigrate into the United States under the Trump administration.
Recently Joe Biden has reopened the doors for the foreign entrepreneurs through startup visas. Let’s look at what exactly is a startup visa.
The door for the foreign entrepreneurs to enter the United States of America has been reopened under the administration of Joe Biden. The US Department of Homeland Security (DHS) had announced that it is withdrawing a proposed rule which was issued under the administration of Trump.
The withdrawn proposed rule was to remove the International Entrepreneur Rule (IER) which is more commonly known as the Startup visa programme.
IER is also known as startup visa. This will act as a permit for the foreign entrepreneurs to enter the country and stay in the country for a period of 2.5 years and also has a possibility of another extension for a similar period of time.
Eligibility for Startup Visa
IER or the Startup visa will let entrepreneurs who are qualified which will be based on certain conditions such as funds raised which should be a minimum of USD 250,000 if it is from a qualified US investor or USD 100,000 which should be through government grants.
If they meet the above criteria the entrepreneurs will obtain the immigration parole. The immigration parole will let the entrepreneurs to temporarily enter the country to stay, build and develop their startup even without having a green card or a working visa.
DHS has stated that the withdrawal of the policy is an effort of the Biden’s administration to ensure that all the ways available under the law should be available for the ones who are trying to come to the US which includes the qualified entrepreneurs who would come to the US grow their startups that would benefit the country by growing their business and creating new jobs for the workers.
Fiona McEntee who is a Chicago based immigration attorney has conveyed that, she is thrilled that the Biden administration has decided to implement the IER and added that the current immigration system does not provide an option for the foreign entrepreneurs to enter the Country which provides a competitive disadvantage and IER is expected to fill that gap. She added that the country will have to do what it can in order to retain the innovative immigrant entrepreneurs.
Immigrant Entrepreneurs in the US
Bobby Franklin who is the President and CEO of the National Venture Capital Association has said that the immigrant entrepreneurs in the country have made huge contributions to the economy of the US. The entrepreneurs have created some of the major companies in the country such as Moderna and Pfizer which have successfully developed vaccines for Covid-19.
He added that by implementing IER the Biden Administration has unlocked a way for job creation which would help US in remaining as a global leader in innovation.
Other advantages of the Startup Visa
The foreign entrepreneurs even the ones from India will have an added advantage because of IER. Other than the advanced technology that is available in the United States even when the founders of the company are present in the same country, the US investors would have a comfort level.
Hence, with a US base, the access for funding and the future for the growth of startups especially the tech-based startups would be much more easier. It is a win-win situation for both the parties.
According to an early representation made by the National Venture Capital Association and other associations to the DHS, the IER is expected to create more than 4.29 lakh jobs in the first 10 years which would account for more than USD 25 billion in the form of additional wages and will also inject the indirect value of around USD 18 billion to the US economy.
FAQ
Which countries have startup visa?
Australia, Austria, Canada, Chile, Denmark, Estonia and France are some of the top countries that have Startup Visa.
Which country is best for entrepreneurs?
Japan, Germany, United States, and United Kingdom are some of the best countries for entrepreneurs.
Which country has most successful startups?
United States, China, India, and UK are some of the countries with most Unicorn startups.
Conclusion
Countries such as Canada, UK and Israel already have a separate category of visas for foreign entrepreneurs. The IER was originally created at the end of Obama’s administration but was later stopped under the Trump administration.
Nitin Konde
