Visa, a global leader in digital payments, recently announced a partnership with Fundbox, an embedded working capital platform for small businesses, to enhance Fundbox's platform with the power of digital payments. The Fundbox Flex Visa Debit Card, issued by Pathward, N.A., is the first stage in this relationship, and it helps small business customers better manage their cash outflows.
In the coming months, Fundbox and Visa will work together to launch several new payment products. These include a Buy Now, Pay Later (BNPL) solution for small businesses that want flexible payment options when making purchases, and a push-to-card transfer option for instant fund disbursement through Visa Direct1, Visa's real-time2 money movement network.
“Small businesses that embrace digital tools tend to be more resilient and better able to compete, As Visa continues to work towards digitally enabling 50 million small businesses by 2023, we’re excited to be teaming up with Fundbox to bring a range of new digital offerings to the market, from cards to installments to disbursement.”
-Jack Forestell, Chief Product Officer, Visa.
Fundbox Flex Pay is a spend management solution that helps business owners manage payables while allowing them to fund spending in a variety of ways and at different times. Fundbox has experienced rapid growth and adoption, with payment volume increasing by over 80% quarter over quarter and the median active client using the service over five times each month. The Fundbox Flex Visa Debit Card gives card-accepting merchants the power of Flex Pay, allowing them to accept payments for things like travel, supplies, and miscellaneous expenses.
The growth of Fundbox's working capital platform has been aided by the great performance of Fundbox Flex Pay. Fundbox has crossed over $160 million in annual revenue run rate because to their methodology of embedding within their clients' systems and workflows, as well as the growing demand for people to start their own enterprises.
Small business owners are increasingly turning to digital payments to help them grow and thrive, according to the latest U.S. Census statistics, which shows a record 5.4 million new business registrations were submitted last year. According to Visa's Global Back to Business Study, 73% of small businesses regard accepting new forms of payment as critical to their success, and 59% say they are now using or aim to utilize entirely digital payments within the next two years.