Fintech partners with commercial bank to grow its presence into foreign exchange commercial space
Fintechs this year have rapidly extended their reach, partnering with card giants, commercial banks and with other fintechs to expand into multiple areas such as cross-border payments, FX, B2B payments and business software.
This week, the US based payments solution provider, Plastiq partnered with Silicon Valley Bank to offer foreign exchange credit card capabilities. Under this partnership, businesses would be able to use their credit card to pay an international supplier in their local currency instead of the US dollar and even where a credit card is not accepted.
Last month, Deutsche Bank partnered with Airwallex to provide virtual account collection in Japan and API-enabled foreign exchange services in Hong Kong. Previously, in February, Deutsche Bank launched digitally enhanced FX platform for business clients in Sri Lanka.
Silicon Valley Bank will launch this new currency option on a rolling basis and will ultimately provide the option of paying suppliers in more than 90 currencies.
“This unique value-add will empower businesses to further optimize their cash flow and maximize their working capital to ensure their companies can continue operating during this time of economic uncertainty,” said Eliot Buchanan, CEO and co-founder of Plastiq.
Using Plastiq, businesses can free up 30-45 days of their cash flow which can be used elsewhere in the business, the press release noted. The company charges a flat fee for domestic and international payments which can be processed under three business days.
This partnership also extends to Silicon Valley Bank’s Commercial Card segment. The users of these commercial cards can use Plastiq to pay suppliers that do not accept credit cards in the U.S. or global markets, enabling them to benefit further from their SVB Commercial Cards.
Last year, Plastiq had announced that US Visa commercial cardholders could now use its platform to pay vendors. Plastiq works with all major credit card providers including Mastercard, Visa and American Express.