Visa (NYSE:V), a global leader in digital payments, today announced its partnership with Fundbox, an integrated working capital platform for small businesses, to enhance Fundbox’s platform with the power of digital payments.
The first step in this collaboration is the launch of the Visa Fundbox Flex debit card, issued by Pathward, NA, which helps small business customers better manage their cash outflows.
In addition to the Fundbox Flex Card, Fundbox and Visa will work together in the coming months to introduce a series of new payment products, including a Buy Now, Pay Later (BNPL) solution for small businesses at the looking for flexible payment options when making purchases and a push-to-card transfer option for instant disbursement of funds through Visa Direct1, Visa’s real-time money movement network2.
“Small businesses that embrace digital tools tend to be more resilient and better able to compete,” said Jack Forestell, chief product officer at Visa. “As Visa continues to work to enable 50 million small businesses to go digital by 2023, we are thrilled to partner with Fundbox to bring a range of new digital offerings to market, from cards to cash installments. through disbursements.”
Fundbox Flex Pay is an expense management solution that helps business owners manage debt while providing flexibility in how and when to fund expenses. Fundbox has seen significant growth and rapid adoption of the product. Payment volume has increased by more than 80% quarter over quarter, and the median active customer uses it more than five times per month. The Fundbox Flex Visa Debit Card brings the power of Flex Pay to card-accepting merchants, enabling convenient payments for expenses such as travel, supplies and incidentals.
The strong performance of Fundbox Flex Pay contributed to the growth of Fundbox’s working capital platform. Combined with their approach of integrating into their clients’ systems and workflows, and people’s growing desire to start their own business, Fundbox has surpassed $160 million in annual revenue.
“We’ve seen our working capital solutions become more integrated into our clients’ cash cycles as small businesses embrace digital payments to drive growth and operational efficiency,” said Prashant Fuloria, CEO of Fundbox. “In order to accelerate the flow of funds to our customers, it is essential for us to continue to improve our core payment capabilities, and our partnership with Visa is an important step towards this vision.”
With the latest US Census data showing a record 5.4 million new business applications were submitted last year, small business owners are increasingly turning to digital payments to help them develop and prosper. According to Visa’s Global Return to Business Study, 73% of small businesses surveyed consider accepting new forms of payment essential to growing their business, and 59% said they are already using or planning to to use only digital payments over the next two years.