CardUp partners with Visa to launch the cross-border payment solutions

Faced with competition in cross-border payments, card giants are partnering with fintechs to broaden acceptance of commercial cards by touting the working capital benefits of extended payment terms.

In the latest example, Singapore-based non-bank payments company CardUp has partnered with Visa to launch payment solutions for businesses which would allow them to take credit to make international payments.

Earlier in this cross-border space, Cambridge Global and Beanworks partnered, Nium and Banco Hipotecario teamed up and Emburse partnered with TransferWise.

According to the press release, global remittance is ‘dominated by bank to bank transfers’, the company enables businesses to make payments via credit cards to suppliers internationally who do not accept credit cards.

The company’s solution uses its company status as a registered Visa Business Payment Solution Provider (BPSP) to help businesses in Hong Kong to utilise their credit limits and for this the company charges a processing fee per transaction. This is offered on customised rates which helps them with their cash flows.

CardUp in its press release said that “its new B2B facility and its status as a registered Visa BPSP will help the businesses benefit from more flexible payment options to keep their businesses afloat during uncertain economic periods”.

CardUp’s solution integrates with management solutions and ERP platforms and provides with dataflow and reporting. This also enables any payment made by the bank through transfer or cheque to be shifted to card regardless of whether the end-recipient accepts card payments, the press release noted.

The company has a digital platform in Singapore and collaborates with major banks such as Citi, DBS and UOB.

“Our partnership with CardUp helps businesses extend their days of payable outstanding and optimise their working capital with their commercial cards, crucial under current business climate,” said Maaike Steinebach, Visa General Manager, Hong Kong and Macau.