Efficiency, innovation and interaction are key market trends.

For Latin American financial institutions, businesses and consumers, three key trends are influencing today's credit card and payment solutions: Efficiency, innovation and interaction. As a result, the world's leading card brands are able to deliver an ever-increasing array of benefits to their partners in Latin America.

Efficiency is one of the major advantages of automating payment processes, according to Rafael de la Vega, vice president, Commercial Solutions, Latin America & Caribbean Region, Visa International. "Electronic payments, including card-based solutions, can drive growth and efficiencies for Latin American businesses," he says.

In addition, electronic payments play a "significant and sizeable" role in promoting economic growth and development, according to "The Virtuous Circle: Electronic Payments and Economic Growth," a recent white paper developed by Visa International and Global Insight, one of the world's leading econometric forecasting and advisory firms. By increasing the efficiency and velocity of payments, electronic payment networks have the potential to create cost savings of at least 1 percent of GDP annually over paper-based systems, according to the Visa study.

When it comes to innovative card solutions for corporate clients and consumers, Latin American financial institutions are in the forefront. In July, Banamex (Citibank Mexico) became the first MasterCard financial institution worldwide to offer a smaller alternative card that works in swipe terminals at the point of sale.

"We launched the Banamex Twin Card in conjunction with MasterCard in July and cardholder demand has exceeded our expectations," said Augusto Escalante, corporate director, Consumer Banking, Banamex. He added that cardholders like the card's unique design, as well as attributes of this particular offering, such as the "monthly usage limit per card" which allows the main cardholder to assign a different usage limit to each additional card, giving them control and security.

MasterCard research indicates there is strong consumer demand for an alternative card form. More than 50 percent of consumers surveyed indicated they were interested in acquiring a MasterCard SideCard and more than half said they would make this card their primary card.

Interaction is another theme in today's card marketplace--and nowhere is that more apparent than in the travel services arena. Rapidly evolving online tools allow Latin American consumers to reserve and purchase travel services, while providing management, accounting and reporting tools for businesses.

"There is a definite evolution in the distribution of travel services to an interactive distribution platform," says Federico Serrano, director of interactive travel business development, American Express. "But this needs to be a holistic solution that extends well beyond the booking engine to include fulfillment and support--in other words, a complete end-to-end process."

As Latin American financial institutions deploy these types of efficient, innovative and interactive solutions, businesses can expect benefits like faster payment flows, better control of expenses and greater customer loyalty. At the same time, consumers can take advantage of these new tools to manage their personal spending, access services more conveniently, and achieve their personal financial goals.

Visa: New payment cards can serve "unbanked" consumers

A new class of payment products, such as the new pre-paid money transfer cards, can act as "gateway" products for unbanked consumers, helping to draw individuals and capital into Latin America's mainstream economy.

"For unbanked individuals, inclusion in the financial system opens the door to new opportunities," says Vicente Echeveste, vice president, Deposit Access, Visa International Latin America & Caribbean Reqion. "For the banking industry, these new products offer an excellent business opportunity to penetrate a new market segment."

A recent study by Visa International and Global Insight, "The Virtuous Circle: Electronic Payments and Economic Growth," highlights the importance of electronic payment products in Latin America and throughout the world. In developed economies, the continued expansion of payment options--both card-based and embedded in consumer devices--will be a key factor in reducing friction and creating economic efficiencies.

In Latin America, electronic payment systems can play a powerful role in modernizing financial systems, creating economic transparency, and contributing to greater predictability, liquidity and stability, according to Echeveste. For instance, the growing use of Visa's money transfer card, Visa Giro, and other pre paid card products creates a potentially powerful engine for growth--drawing cash into bank accounts where it can provide low-cost funds for lending and investment.

Visa is the world's leading payment brand generating US$2.4 trillion in annual card sales volume. Visa has unsurpassed acceptance in more than 150 countries. The Visa organization plays a pivotal role in developing innovative payment products and technologies to benefit its 21,000 member financial institutions and their cardholders. Visa is a leader in Internet based payments and is pioneering the creation of u-commerce, or universal commerce--the ability to conduct commerce anywhere, anytime, and any way,

For more information, visit www.corporate.visa.com.

American Express: Interactive business travel strategy offers many benefits

Adopting an interactive business travel strategy can deliver significant benefits to Latin American businesses. American Express offers a web-based model that encompasses online booking, fulfillment, account management and information reporting, with specialized travel counselors available to assist and support users as needed.

"When you involve automation in an end-to-end process, you become more efficient," says Federico Serrano, director of interactive travel business development, American Express. "This creates a win-win situation for the company, its employees and the travel service provider."

A global leader in interactive travel, American Express intends to expand its offerings to the Latin American market, serving major enterprises and mid-size and small businesses. "We have a comprehensive infrastructure that allows us to bring these services to Mexico, Brazil, Argentina and other markets," says Serrano, "and we will continue to expand our offerings."

"Our interactive business travel solutions provide comprehensive information reporting and feedback to corporate accounts," Serrano says. "Corporate policies, such as restrictions on first-class travel, or mandatory use of lowest logical available air fare can be included in these systems, along with the ability to fulfill commitments to preferred vendors."

American Express offers a comprehensive Corporate Travel Program, with worldwide reservation and booking services for air, hotel and car. Of particular growing importance to Latin American customers is the American Express Corporate Travel Interactive Program. This program features AxiPlus One, Direct and Premium for small, middle and large corporations respectively. AxiPlus is an innovative Web based travel booking system that offers substantial savings through greater policy compliance, enhanced processing efficiencies, robust vendor preferencing and reduced fulfillment costs. However, whet makes the travel booking system most successful is the specialized navigational support (24/7) which drives higher adoption rates and facilitates change management within the corporations.

For more information, visit www.americanexpress.com.

MasterCard Global Service[TM] assists international travelers

International travelers need access to the same kinds of emergency and support services that are available to them at home. When their cards are lost or stolen, when they need cash, or when they require account information, they appreciate receiving prompt assistance, day or night, in a language they understand.

MasterCard Global Service provides unprecedented emergency customer service--anytime, anywhere, and in any language. Cardholders can obtain assistance via one of 79 toll-free telephone lines, or access account information and insurance and card enhancement services.

In addition, the following services are available on most Premium cards (Gold and Platinum) issued by financial institutions in Latin America:

* MasterAssist provides emergency medical and legal referrals, travel assistance, and pre-trip destination information.

* MasterTravel[TM] provides travel accident insurance

* MasterRental[TM] provides coverage for accidents, theft and loss on car rentals

* MasterDelivery[TM] provides delivery of goods purchased in the US to Latin America

Also available on Platinum cards:

* MasterAssist Plus provides insurance coverage in the event of a medical emergency

* Concierge Service provides personal assistance with restaurant reservations, tickets to events and personal shopping.

For more information on MasterCard Global Service, please call collect to the U.S. on 1-636-722-7111.

Compact-sized MasterCard payment card offers enhanced convenience and flexibility

For busy Latin American cardholders, the stylish new MasterCard[R] SideCard offers increased convenience and flexibility.

With its modified design small enough to fit on a key ring, MasterCard SideCard is an alternative to the traditional-sized payment card that works in all swipe terminals at the point of sale.

Issued as a companion card to a full-sized MasterCard card, the MasterCard SideCard is the first and only companion card capable of incorporating contactless chip technology. This allows issuers the ability to add the MasterCard PayPass feature, which provides cardholders with a "simpler way to pay" in quick payment environments such as fast food restaurants.

In mid July, Banamex (Citibank Mexico) became the first MasterCard financial institution worldwide to begin offering this solution to its cardholders under the name Banamex Twin Card,

"MasterCard Alternative Card Forms is just another example of MasterCard's dedication to develop products that fit the needs of its cardholders and member financial institutions," said Jean Rozwadowski, president, Master Card Latin America and Caribbean Region.

For more information, visit www.mastercardinternational.com.