HSBC to Expand Visa Debit Issuance in Asia Pacific, Middle East

The five-year regional agreements represent an expansion of HSBC's current credit card issuing relationship with Visa and are the latest milestones in Visa's efforts to combine its global brand and payments expertise with strong local marketplace knowledge and execution to help clients grow their business.

"This deal expands the relationship between two global leaders -- HSBC and Visa -- in some of the fastest-growing areas in the world," said Hans Morris, president, Visa Inc. "We are delighted by HSBC's decision to enhance our partnership and extend Visa's debit products to new and existing customers across multiple geographies. Importantly, this agreement delivers on our strategy to expand Visa's global debit product offerings as we seek to further the migration from cash and check to Visa payments."

Under terms of the agreement for Asia Pacific, Visa will become HSBC's exclusive partner for new consumer debit products, with HSBC issuing more than 10 million Visa debit cards in Australia, Brunei, India, Indonesia, Malaysia, Mauritius, Philippines, Singapore, Sri Lanka, Taiwan, Thailand and Vietnam.

"Visa debit cards are a key element of our customer proposition in the Asia Pacific markets," said Conrado Engel, Regional Director of ASP PFS, HSBC. "HSBC customers will enjoy the benefits provided by HSBC and Visa using the Visa debit card in our direct channels as well as at the merchant point of sale."

HSBC Middle East Limited will begin issuing new Visa-branded debit cards by early 2009 in eight countries including United Arab Emirates, Qatar, Bahrain, Oman, Egypt, Jordan, Lebanon and Pakistan. Some of these approximately one million new cards will also be Visa payWave-enabled, allowing cardholders to make contactless payment transactions quickly and securely at the point of sale. The Visa payWave-enabled debit cards will also be able to support services such as loyalty programs for cardholders, bringing more convenience and added value to debit transactions.

"The introduction of a region-wide HSBC Visa debit chip card is further evidence of HSBC's commitment to delivering innovative products to market and enhancing customers' banking experience. We are delighted to launch a product in association with Visa that offers our customers convenience and flexibility, enabling them to use their cards at the point of sale and at the ATMs," said Abdulfattah Sharaf, CEO, Personal Financial Services, HSBC Middle East.