Visa Commercial Solutions in Gobernment - A Global Overview
Origins: 1985-1995
Much before 1995, the United States was the only country with governmental entities that had systematically worked to eliminate purchase order-style procurement with a charge card-based program. Between 1995 and 1997, Australia, Hong Kong, Singapore, Canada and the UK began various programs. In 1998 and 1999, there was additional interest, such as the implementation of local government programs in Sweden and a redesigned program in Singapore.
Recent growth. In recent years, however, there has been a groundswell of interest among individual central and local government agencies, as well as integrated national government programs. Over the past two years, new programs have been piloted or launched in France, Germany, Italy, Spain, Norway, Ireland, Taiwan, Indonesia, New Zealand, Korea, and Brazil. The central governments of Chile and Japan are currently investigating a Visa Purchasing program, and Italy is in the process of developing one. Major efforts to expand usage or new agency implementations have also taken place in the U.S., U.K., and Hong Kong.
Current participation. There are 19 countries with some form of Visa government purchasing or travel card program in full implementation or pilot. Overall, there are nearly 1000 governmental bodies throughout the world using Visa Commercial Solutions, counting the various departments and agencies participating in both the U.S. and U.K. national programs.
Australia
Australia began implementing Visa Purchasing in 1995. There is now an integrated national government program, as well as state programs in West Australia, New South Wales, and Victoria.
Canada
The Canadian central government has had a purchasing program for a few years and went live with a new Visa Purchasing issuer in March 2002. In addition, there are three programs at the provincial level, including the Government of British Columbia in 1994-1995.
Brazil
The Brazilian central government and two states, Matto Grosso and Paraná, are utilizing Visa Corporate for travel and other expense management.
Chile
At the Visa International Government Services Conference in 2002, the Government of Chile announced their decision to implement a Visa Purchasing program.
European Union
France
In January 2002, the Government of France announced a national pilot for purchasing cards in the public sector. A Visa consortium of banks has been selected to lead four pilots in the health, education and local government areas.
Germany
The German Government is currently implementing a travel card program with 10,000 cards, and this is due to grow to 50,000 cards. It will then look at introducing Visa Purchasing cards.
Ireland
In the Republic of Ireland, there are several local government entities and a hospital trust using Visa Purchasing.
Italy
The central government is in the process of developing a consolidated buying program. In evaluating a Visa Purchasing program, the Government of Italy utilized a cost-benefit study of the Gaslini medical institute conducted by consulting firm Lynkeus. The first phase of this program was rolled out in March 2002.
Norway
There are currently two local government programs.
Spain
About 18 months ago, the Spanish university IESE began studying local government procurement in 7 cities, identifying cost savings of 42 to 71 percent using Visa Purchasing. One program is now live and another is about to go live.
Sweden
There are currently around 20 local government programs that began in mid-1998.
United Kingdom
The U.K. has one of the world's most extensive consolidated procurement programs with over 430 government departments and agencies participating.
Hong Kong
The Government Supplies Department of the Hong Kong Special Administrative Region, which only uses Visa for its purchasing program, has been operating since 1996-1997. Its usage, however, was initially limited. In 2000-2001, after reviewing the results of other government implementations of Visa Purchasing, the agency decided to expand the program and has worked to switch spending from traditional systems to an automated system.
Indonesia
Indonesia's oil regulatory agency Pertamina launched a Visa program last year. There are no other payment card brands in government use.
Japan
The government is actively investigating purchasing programs. This year's Visa conference is part of their strategy to evaluate the desirability and feasibility of a program.
Korea
The national water department, the national agricultural farmers union, and the state-owned Ginseng & Tobacco Company are all relatively new users of Visa Purchasing.
New Zealand
There are various secretariat bodies, such as the water board, using Visa Purchasing. Visa is the only payment brand used.
Singapore
The Ministry of Defense and the Trade Development Council are the two key users of the program, which was initially launched in 1995. There are other brands in the market, but Visa is the leader.
Taiwan
Based on the Visa conference in 2000, the Bureau of Monetary Affairs decided to champion a Visa Purchasing program. The Executive Yuan moved forward with a two-phase pilot, which began with 33 agencies and was expanded to 50 agencies in mid-2001.
United States of America
The U.S. was an early evaluator of and model for charge-based purchasing and travel programs, and today it still represents the largest set of programs. More than 24 major agencies, 100 minor agencies, and nearly 300 associated departments of the federal government use Visa Commercial Solutions. In addition, Visa Commercial Solutions are used by 23 states, not counting local agencies or quasi-governmental programs
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