CardUp has launched a new solution in Hong Kong that enables businesses to instantly access credit on international payments at competitive rates. The fintech is a credit-card enablement platform that improves the way individuals and businesses pay and get paid, access credit, and manage payments.
While the global remittance market is dominated by bank-to-bank transfers, CardUp enables these payment 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.
“Many businesses often think of a credit card as nothing more than a payment method. However, a business credit card can also double up as a planning and budgeting tool,” said Maaike Steinebach, Visa general manager for Hong Kong and Macau.
CardUp’s solution leverages the company’s status as a registered Visa Business Payment Solution Provider (BPSP) to help more businesses in Hong Kong tap onto their under-utilized 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.
“Our collaboration with Visa allows us to double-down on this flexibility,” said Nicki Ramsay, Singapore-based CEO, “as our BPSP facility is competitively-priced, more convenient than using conventional credit lines and quicker as there is no need for applications or waiting times.”
A survey by the Hong Kong General Chamber of Commerce (HKGCC) found that 42 percent of small- and medium-sized enterprises (SMEs) and 24 percent of large corporations were concerned about their survivability amid the ongoing COVID-19 pandemic. During this time, these businesses were particularly exposed to reduced short-term cash flow due to revenue losses.
CardUp believes 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.
Under the partnership, CardUp allows businesses to enable B2B payments on credit cards, improve cash flow, digitize processes, and save costs through automation. The fintech also works with banks in the region such as Citi, DBS and UOB who use it to identify new customers and business lines.