52116 - Visa Settlement Risk Sharing Facility

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About Us

Our Leadership

Development Partners

World Bank Group Annual Report
Strategic Priorities

Investing in Jobs

Mobilizing Private Capital
Accountability

Our Approach to Accountability
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our Products & Services
PRIORITY SECTORS

Agribusiness

Health

Infrastructure

Manufacturing

Tourism

ALL SECTORS
CROSS-CUTTING THEMES

Climate Business

Fragile & Conflict-Affected Situations

Gender

Sustainability
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation
RESULTS

World Bank Group Scorecard

Targets & Progress

Stories of Impact

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Funding Program & Investor Relations

Get in Touch

Summary of Investment Information

Project Number

52116

Company Name

Visa SWIPE Settlement Risk Sharing Facility

Date SPI Disclosed

Sep 25, 2026

Country

Latin America and the Caribbean Region

Region

Latin America and the Caribbean

Projected Board Date

Apr 10, 2026

Environmental Category

FI-3 - No Impact

Status

Pending Disbursement

Last Updated Date

Sep 25, 2026

Department

Regional Industry FIG LAC & EUR

Industry

Financial Markets

Previous Events

Approved : Apr 10, 2026
Signed : Aug 7, 2026

Sector

Finance Companies

Project Description

The proposed investment is for an unfunded risk participation facility on a portfolio of settlement risk exposures to be established between Visa International Service Association (“Visa” or the “Company”) and IFC. The facility size will be up to US$200 million. Through the investment IFC will cover settlement risk of a pool of eligible Visa licensee financial institutions (primarily banks but also non-bank financial institutions, and fintechs) based and operating in the Latin America and the Caribbean (“LAC”) region (the “Facility”).

In some of these markets, financial institutions are constrained by financial requirements that can limit their ability to participate in global payment ecosystems, leaving millions of people and local merchants reliant on cash and cut off from the convenience, safety, and efficiency digital payments can provide.

The new IFC initiative addresses this gap directly by assuming a portion of the credit settlement risk, thus enabling more institutions to offer innovative and reliable digital payment services to more customers, including small business owners, women entrepreneurs, and people historically shut out of the formal financial system (the “Project”).

Associated Advisory Engagement

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	200.0
Loan
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Guarantee	Loans to MSME (mix of Micro and SME)

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

Increased access to payment services: The Project is expected to improve access to card payments among consumers and businesses in the LAC region through two main channels. First, it will support financial institutions already operating on Visa’s network by partially replacing the existing collateral arrangements with a more efficient alternative and by allowing financial institutions to increase the settlement risk exposure that the card network is able to process. Second, the Facility will pioneer an innovative instrument that has the potential to support significant growth in the number and range of financial institutions engaging in the card payment market in the LAC region, fostering competitiveness and further growth of digital payments. Over time, greater participation is expected to boost competition, accelerate digital payment adoption, and improve the availability of payment services across target markets.

Through the Project, IFC will provide an innovative, first-of-its-kind risk management solution designed to support the continued expansion of the digital payments business in the LAC region. Given its extensive footprint across EMDEs, combined with its proven track record in structuring and executing risk transfer solutions on a commercial basis, IFC is uniquely positioned to deliver this structure.

E&S Category Rationale / Risks and Mitigation

The proposed investment consists of an unfunded risk participation facility on a portfolio of settlement risk exposures of eligible Visa’s financial institution clients (banks, non-bank financial institutions and fintech) operating in LAC. Pools of settlement risk exposures will consist predominantly of settlement obligations of individual consumers using debit cards. All underlying risk of supported activities is relatively low and short-term (less than 30 days). Settlement obligations guaranteed under the Facility are purely financial guarantees in nature and do not involve any new asset creation or direct support to specific activities. As such, in accordance with the IFC’s Sustainability Framework, the Project’s E&S categorization is FI-3. Visa Human Resources (HR) policies and practices are generally aligned with IFC Performance Standard 2 (PS2) on Labor and Working Conditions. Visa will continue implementing its HR policies and procedures in accordance with PS2.

Contacts

For Inquiries About the Project, Contact

Visa International Service Association
Caitlin McDonnell
Vice President, International Affairs
+1 202 412 0778
camcdonn@visa.com
701 Pennsylvania Avenue NW, Suite 800, Washington, DC 20004
https://www.visa.com/

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Volume of Payments	USD M		Not Available	Not Available	Not Available

Projects

Summary of Investment Information

Project Description

Associated Advisory Engagement

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation

Similar Projects

Contacts

Projects

Summary of Investment Information

Project Description

Associated Advisory Engagement

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

IFC's Investment as Approved by the Board

FIG Use of Proceeds/Beneficiaries

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

IFC's Role and Additionality

Development Results

E&S Category Rationale / Risks and Mitigation

Environmental & Social Categorization Rationale / Key Risks & Potential Impacts

Environmental & Social Management System (ESMS)

Press-Release

Related Environmental Document

Similar Projects

Contacts

Information on E&S Complaints and Grievance Mechanisms

Disclaimer