Fundbox partners with Visa for small business payment solutions
The first step in the collaboration is the launch of the Fundbox Flex Visa Debit Card
Israeli fintech unicorn Fundbox is partnering with Visa to strengthen its digital payments platform. The first step in this collaboration is the launch of the Fundbox Flex Visa Debit Card, issued by Pathward, N.A., which will help small business customers better manage their cash outflows.
In addition to the Fundbox Flex Card, Fundbox and Visa will work together in the coming months in an effort to introduce a series of new payment products, including a Buy Now, Pay Later (BNPL) solution for small businesses, 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,” said Jack Forestell, Chief Product Officer at Visa. “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.”
Fundbox Flex Pay is a spend management solution that helps business owners manage payables while providing flexibility around how and when to fund expenses. Fundbox has seen significant growth and quick adoption of the product, and reports payment volume increasing over 80% quarter-over-quarter, and the median active customer using it over five times a month. In total, Fundbox has crossed over $160 million in annual revenue run rate.
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“We’ve seen our working capital solutions become more embedded within our customers' cash flow cycles as small businesses adopt digital payments to drive growth and operational efficiency,” said Prashant Fuloria, CEO of Fundbox. “In order to accelerate the flow of funds to our customers, it’s critical for us to continue enhancing our core payment capabilities, and our partnership with Visa is a significant step towards that vision.”
Fundbox, which had developed an AI-powered financial platform for small businesses, closed a $100 million Series D funding round at a valuation of $1.1 billion last November.
