ViA® Government solutions have been developed as part of a unique, overall structure that ensures everyone can benefit by being part of the ViA® model. Few like to hear that the government would be involved in what we may do in a small business, but if there is a mutual benefit, and more importantly, it can be done without putting a burden on the small business, and maybe even give the small business advantages, then it is likely that such proposed solutions can widely be accepted. Even government entities, departments and some subsidiaries can use the ViA® Cashier Solution to improve the way items are distributed or sold, with instant logistics and facts reported back - just like any other merchant . . . and all in a better way!
In many countries, corporations often complain of high taxes. In some countries, it can be so bad that only a small percent pays taxes while the majority pays hardly any at all. With our solution for reaching the LAST MILE vendor, it would be easy for a government to impose a nominal commercial tax as low as 3 - 5%. As a result, they would receive much larger tax revenues from the biggest economic segment in their country.
Following are crucial points for governments to keep in mind when talking about going towards a cashless society:
-Microeconomic Perspective
Up until now, it has been impossible for governments to have a clear insight into their country's microeconomy because most small business owners, small merchants, street vendors, and home service providers prefer cash payment for their goods or services.
-Value-added Tax (VAT) or Business Tax
Topping-up or buying a voucher to fill up a mobile or online account (wallet) is difficult to detect as a monetary transaction, as there is no VAT added to the amount. Governments would need to rely on the operator's willingness to provide pertinent information so that sales tax or VAT can be paid, according to each country's tax structure.
On one hand, governments struggle with the cost of maintaining a national currency, realizing that cash transactions encourage tax evasion and illegal activities. Lost revenue from tax evasion is significant, as is the cost of crime.
ViA®'s Reverse Revenue Model directly addresses this issue by looking at the problem from the consumer's point of view. Today, a merchant typically passes on to the consumer the processing fee, called the merchant discount rate (MDR), which is anywhere from 1- 3% of the transaction.
While on the other hand, a vendor who is not paying for payment processing today or who is evading taxation by being under the radar is unwilling to incur that cost by going cashless.This is a dilemma that is faced across the world and, as of today, no one has found a solution that satisfies everyone.
ViA®, however, does not charge an MDR. For most of the transactions the consumer makes with a ViA® wallet, the service is free. Instead, ViA® earns revenue from Value-added services and revenue participation with wholesale providers of goods and services.
Inevitably, there needs to be a compromise which is difficult within current models provided by banks, telcos, and payment processors. They continue to follow traditional and outdated banking model.
The largest hurdle, and the root for not solving these basic problems, is the high cost of infrastructure. The cost to provide a secure payment terminal device, or POS device, AND operate a traditional payment network is prohibited.
Our model is significantly more cost effective for the merchant and also much more secure. We work closely with governments in distributing welfare and automating payments in an e-Government environment.
We also encourage governments to lessen the burden of tax for those who participate in the system. After all, a small tax is better than none, and a system that is capturing all of the data is far more efficiently managed.
The ViA MiniPay™ and the ViA® Model have turned the traditional standard upside down. With a device that is free for vendors, the MiniPay™ Device makes it possible to create the largest payment acceptance network in the world.
The ViA® Model and our new innovation, the ViA MiniPay™, open up a totally new perspective, resulting in 100% FINANCIAL INCLUSION for all.