Visa Signs Ecommerce Agreement

- Thursday, September 20, 2001

Visa Signs Ecommerce Agreement

Peruvian supermarket chain Ewong (www.ewong.com) has signed and agreement with Visa International (www.visalatam.com) to enable Peruvians living abroad to buy products online using credit card.

"The main aim of this promotional alliance is to capture the market with high purchasing power that is looking for simple, cheap and easy ways to send money, in this case products, to relatives in their country of origin," Visa merchant relations manager Jorge Ortega told BNamericas.

Peru has a large emigrant population, mainly in the US, who send back over US$900mn annually. Peru will be the first country to try this new program that allows for the quick, tax-free and direct purchase of products over the Internet in one's country of origin with a Visa card.

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According to the executive, the alliance includes an agreement under which Visa Latinoamerica can advertise to Peruvians living in the US, while EWong can offer its cardholders incentives for purchases, such as free home delivery service.

Visa International chose EWong because of its experience in ecommerce transactions in Latin American. Furthermore, EWong offers Visa cardholders a series of services and products (home delivery, EWong bonuses, offers, etc.) that are not offered by other supermarket chains.

Peruvian online ecommerce sales reached approximately US$10mn in 2000, a large portion of which correspond to the B2C segment. This segment registered about a 100% increase in sales largely due to the entrance of EWong and department store chain Saga Falabella.

The company plans to implement this strategy in other Latin American countries, which Ortega declined to reveal.

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