Visa Survey Reveals 68 Percent of Government Agencies Identify Automation as Key for Improving Procure-to-Pay Process

Survey of 50 government officials from 13 markets conducted at Visa International Government Services Conference

Singapore, 23 May, 2005

A survey of 50 government officials from 13 markets around the world, including Japan, Korea, South Africa, Thailand, United Kingdom, and the United States, found that 68 percent cite their key priority as automation and believe that there is further opportunity for improving their procure-to-pay process. The survey was conducted last week at the 7th annual Visa International Government Services Conference in Singapore, which focused on creating transparency, efficiency and stimulating growth.

The survey was designed to provide firsthand insight into governments' procure-to-pay processes, including which parts of the process have proven most challenging to implement and trends over the next five years. In addition, representatives were asked about how electronic payments were being used to support growth efforts.

"Partnering with governments is a strategic priority for Visa and its members to help them achieve a variety of goals," said Aliza Knox, senior vice president, Commercial Solutions, Visa International. "Depending upon the government organization, these may include improving transparency, automation and reducing costs, as well as facilitating the transition to a formal economy, and encouraging small business growth."

Additional survey results showed that:

22 percent of government officials expect that improving process automation will be the most important benefit their organization will derive by implementing a commercial card program, followed by replacing cash (18 percent) and increasing procurement transparency (18 percent).
82 percent of respondents report that their organization has implemented policies that aim to provide greater opportunities for small businesses to work with the government. Of those organizations that have not implemented a small business policy, 78 percent believe that small and medium-sized businesses will become a focus within the next five years.
35 percent of government organizations plan to implement new technologies in the next five years, followed by outsourcing functions (31 percent) and new organization-wide processes (30 percent).

Almost all government services agencies surveyed report that within the next five years they plan to implement a variety of new measures, including new technologies, such as enterprise resource planning systems, centralized processes, and outsourcing to third parties. All of these measures support e-purchasing and expense management initiatives and translate to improved efficiency and cost savings.

This year's theme, "Partnering for Success," provided the platform for twenty internationally recognized industry leaders and authorities on government payment services to share their experiences. A number of governments and member banks showcased their programs, while industry experts such as the Asian Development Bank and the World Bank imparted their insights on global payment issues. The event focused on how to build efficient government payment systems that improve transparency and help stimulate economic modernization and growth. Highlights from the two-day program included:

The Australia Department of Defence discussed how the Visa Purchasing card program has become one of the Asia Pacific region's most successful government payment initiatives.
The Visa BNDES Brazil Government explained how payment solutions provide small businesses with automatic access to funding.
Representatives from ABSA bank and the South African government presented an overview of their Sekulula Card program, which enables electronic delivery of government benefits and empowers citizens with new spending capabilities.
The South Korean Ministry of Construction and Transportation provided an example of a successful cooperative initiative between the government, the financial industry and Visa.
The U.S. General Services Administration (GSA) explained how the administration realized cost savings through streamlined acquisitions and preferred vendor discounts by integrating the Visa Purchasing card with the GSA's online ordering system.
Christopher Rodrigues, CEO of Visa International, provided the keynote address, which outlined Visa's vision for the future and strategy for delivering value to the government sector.

This year, Visa's International Government Services Conference drew more than 200 attendees from 24 markets, which included approximately equal parts national, regional, and local senior government procurement and travel managers, senior commercial banking executives, and senior executives from Visa and its partners.

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Notes to Editors:

About the Visa International Government Services Conference: The Visa International Government Services Conference is held annually to showcase successful Visa government programs and to share best practices for launching and optimizing card programs related to procurement, travel, government benefits distribution, and more. The IGSC provides an opportunity for government officials, Visa specialists, representatives from Visa member financial institutions, and industry experts from around the world to network and discuss new ways to work together to serve the needs of governments, economies, and their citizens. Visit www.international.visa.com/fb/vgs/igsc_2005.jsp for more information.

About Visa: Visa connects cardholders, merchants and financial institutions through the world's largest electronic payments network. Visa products allow buyers and sellers to conduct commerce with ease and confidence in both the physical and virtual worlds. As an association owned by 21,000 member financial institutions, Visa is committed to the sustained growth of electronic payment systems to support the needs of all stakeholders and to drive economic growth. For more information, visit www.corporate.visa.com or Visa Commercial Solutions or Visa Government Solutions.

Contact: Sabine Middlemass, Visa International, Tel: +1 650 432 8307 at globalmedia@visa.com or Carolyn Krytzer, Burson-Marsteller, Tel: +1 415 591 4022 at Carolyn_Krytzer@sfo.bm.com

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