CardUp’s New Solution Enables Businesses to Use Credit Cards for Overseas B2B Paymentsby Fintech News Singapore December 2, 2020
CardUp, a digital credit card enablement platform, has launched a new solution that enables businesses to instantly access credit on international payments at competitive rates.
While the global remittance market is dominated by bank to bank transfers, CardUp enables these payments to be made via credit cards to overseas suppliers who do not accept card payments.
CardUp’s technology connects to accounting and ERP platforms, to provide businesses with seamless data flow and reporting. This is said to provide a solution that enables any payment made by bank transfer or cheque to be shifted to cards regardless of whether the end-recipient accepts card payments.
This means businesses can make use of their available credit limit to delay the outflow of that expense for up to two months, on payments to over 100 countries.
CardUp’s solution leverages the company’s status as a registered Visa Business Payment Solution Provider (BPSP) to help more businesses in Singapore tap onto their underutilised credit limits.
To do so, CardUp charges a processing fee per transaction, but the company’s status as a registered Visa BPSP means customised rates can be offered to businesses, helping companies maximise their cash flow at a competitive price.
“Sustaining cashflow continues to be a problem for Singapore’s businesses during the economic slowdown. At the same time businesses are operating in an increasingly global market, and make payments to suppliers around the world.
We saw an opportunity to provide a solution that offers an alternative credit facility on these international payments, using available credit card lines whilst equipping businesses with the tools they need to automate their payment processing,”
said Nicki Ramsay, CEO of CardUp.
“Businesses often think of credit cards solely as a payment method. However, a business credit card can also double up as a planning and budgeting tool, helping businesses extend their outstanding payables and optimise their working capital,”
said Kunal Chatterjee, Visa Country Manager for Singapore & Brunei.
“Our partnership with CardUp helps expand the options for businesses to pay with their cards, especially for suppliers who do not previously have card acceptance. This will help to promote usage of digital payments for the entire business supply chain and help these businesses to have better visibility of their cashflow.”
CardUp allows businesses to use their credit cards to pay domestic and international business expenses to non-card accepting recipients, which includes payroll, supplier invoices, rent and more.
Businesses are provided with a digital interface where they can schedule recurring payments and monitor payment statuses all from one dashboard, allowing them to leverage data to track and reconcile payments.
Banks and payment networks can also benefit from increased coverage, capturing incremental spend in non-card accepting sectors, as well as advance digitisation efforts. As such, this helps the cards sector open a US$1 trillion opportunity as businesses are able to use their heavily underutilised credit limits for large business expenses previously not possible by card.
Currently, CardUp collaborates with all major banks in Singapore such as Citi, DBS and UOB. Outside of Singapore, the company has launched its services in Malaysia and Hong Kong to help drive the digitisation of payments in more markets across the region.