2 December 2020 (MY) – CardUp, the 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 – cardo enables these payments to be made via credit cards to overseas suppliers who do not accept 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. Card Up’s solution leverages the company’s status as a registered Visa Business Payment Solution Provider (BPSP) to help more businesses in Malaysia tap onto their underutilized credit limits. To do so, CardUp charges a processing fee per transaction, but the company’s status as a registered Visa BPSP means customized rates can be offered to businesses, helping companies maximize their cash flow at a competitive price.
“We are delighted to expand our services to Malaysian businesses, many of whom grappled both with cash flow problems and challenges digitizing payables and receivables whilst finance teams work digitally in the new post pandemic world. We saw an opportunity to help them with a more flexible digital business payment facility to enable their business continuity,” said Nicki Ramsay, CEO of CardUp. “By launching in Malaysia, we enable enterprises to easily tap onto existing credit card lines to help them tide their cash flow during this uncertain period. Our collaboration with Visa allows us to double-down on this flexibility as our BPSP facility is competitively-priced and more convenient than using conventional credit lines as well as quicker with no need for applications or waiting times.”
Many businesses across Malaysia saw their operations severely impacted during the height of the nation’s movement control order (MCO). Even as the economy is slowly recovering, many businesses still face cashflow problems, with a survey by the SME Association of Malaysia showing that only 22 percent businesses have sufficient cash to last them for a month, whereas 27 percent can sustain till November 2020 and 31 percent until December 2020.1 CardUp believes that its B2B facility will help the businesses benefit from a more flexible payment option to keep their businesses afloat during uncertain economic periods.
As a registered Visa BPSP, CardUp provides the following payment facilities for both businesses and banking partners.
- Enable B2B payments on credit cards. CardUp allows businesses to use their credit cards to pay business expenses to non-card accepting recipients, which includes payroll, supplier invoices, rent and more.
- Improve cash flow. Businesses can improve their cash flow by using their credit cards with CardUp’s platform to obtain up to almost two months of interest-free credit and early settlement discounts. This solution, coupled with competitive rates presented by their status as a Visa BPSP, presents an extremely cost-effective way for companies to access working capital. It is also much easier for them to obtain these funds, without any lengthy and cumbersome applications or heavy documentation required for loans.
- Digitise processes. CardUp provides businesses a digital interface where they can schedule recurring payments and monitor payment statuses all from one dashboard – allowing them to easily leverage data to track and reconcile payments. CardUp’s platform also equips businesses with invoice automation tools to digitize payables and receivables processes, helping finance teams work digitally and thrive in the new normal.
- Cost and time savings. Businesses enjoy additional cost savings through card rewards earned on these business expenses, as well as time and cost savings through the automation and consolidation of domestic and international payments on one platform.
For banking partners
- Obtain more customers and business growth prospects. Banks and payment networks can benefit from increased coverage, capturing incremental spend in non-card accepting sectors, as well as advance digitization efforts. As such, this helps the cards sector open a US$5.4 trillion opportunity as businesses are able to use their heavily underutilized credit limits for large business expenses previously not possible by card.
CardUp’s technology connects to accounting and ERP platforms, to provide businesses with seamless data flow and reporting. This provides 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.
CardUp already collaborates with all major banks in the region such as Citi, DBS and UOB. Outside of Malaysia, the company has made its digital platform available in Singapore (where it first launched) and Hong Kong and has managed hundreds of millions of dollars in payments today to vendors globally. The company is currently seeking opportunities to expand its digital platform across the region to give more businesses in the region an alternative, digital payment facility to better manage their cash flow.