VISA MARKET DEVELOPMENT SUCCESS SPURS OVERALL TRANSACTION GROWTH
VISA MARKET DEVELOPMENT SUCCESS SPURS OVERALL TRANSACTION GROWTH SAN FRANCISCO, July 21 /PRNewswire/ -- Visa U.S.A.'s efforts to build business in new and underdeveloped markets -- such as health care, supermarkets and direct marketing -- added more than $5 billion worth of new transactions for its member financial institutions in 1991, according to company officials. "Our market expansion success is helping our members post the strongest growth in the industry," said Bradford Morgan, executive vice president of marketing for Visa U.S.A. Last week, the bankcard association reported an 11.5 percent increase in first quarter 1992 sales volume compared with the same period the year before. Spurring that growth, said Morgan, was Visa's performance in the health care and direct marketing industries which both posted sales volume increases of 15 percent in the first quarter of 1992 (health care sales: $793 million; direct marketing: $3.4 billion). In addition, supermarket sales were up 122 percent to $345 million for the same period. According to Morgan, Visa U.S.A. launched a market segmentation strategy in the late '80s in an effort to build volume in markets where Visa saw significant growth opportunity. Since that time, the company has tailored its delivery systems and operating procedures to offer customized services and card acceptance procedures to each target market. In addition, executives from Visa U.S.A.'s Merchant Relations division have been working directly with financial institutions and merchants in the various markets to build Visa acceptance and transaction volume. As one result, Visa members have been able to sign new merchants for acceptance in markets that have been dominated historically by cash and checks. In just over a year, more than 5,000 supermarkets have begun taking Visa in all check-out lanes and Visa sales are expected to increase 94 percent to nearly $2 billion in 1992, according to Morgan. In addition, Visa acquirers are signing up 1,000 new health care providers for Visa acceptance every month. In the travel & entertainment market, where Visa acceptance is almost universal, two major "hold outs" in the cruise industry, Royal Caribbean and Holland America, just announced that they will begin accepting Visa. And existing cruise merchants, such as Carnival Cruise Lines, have seen their Visa transaction volume grow exponentially. Carnival's Visa transaction volume increased from $8 million in 1989 to $135 million in 1991, an increase of 1,500 percent. In addition, the Visa U.S.A. Merchant Relations division has created a series of card usage stimulation programs in partnership with merchants. In the travel and entertainment industry, Morgan said that cardholders have been offered special incentives -- such as discounts, room upgrades, free meals -- to encourage them to pay with Visa. In one of its current promotions with
Boston-based ITT Sheraton (running through September), Visa's share of the payment card volume at those properties has increased to 40 percent (year-to-date 1992) from 25 percent during the same period a year earlier.
In addition, the card company's "Monaco Prefers Visa" program has increased Visa transaction volume throughout the principality by 29 percent this year. Other travel and entertainment programs have yielded similar results, according to Morgan: -- Under a program offering Visa cardholders triple mileage when they used their cards with Hilton Hotels, American Airlines and United Airlines (Feb. 1 - April 30, 1991) -- Visa transaction volume rose from 19.6 percent of total card volume in January, 1991 to 52.3 percent in April 1991. -- In "Rewards of the Road" with The Hertz Corporation, which offered discounts for customers who rented cars with Visa (Sept. 6 - Nov. 9, 1991) -- Visa transaction volume increased 27 percent. -- Through "World of Winners" with Radisson Hotels International, a travel agent incentive program where agents encouraged clients to use Visa when booking accommodations (Oct. 1 - Dec. 15, 1991) -- Visa volume increased 55 percent. Visa, with 10 million acceptance locations and
281 million cards issued, including 142 million in the United States, is the world's largest consumer card payment system.
-0- 7/21/92 /CONTACT: Gregory J. Holmes of Visa USA, 415-570-2107/ CO: Visa USA ST: IN: FIN SU:
RM -- SF006X -- 1304 07/21/92 11:52 EDT
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|Date:||Jul 21, 1992|
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