CARDUP, a digital credit card enablement platform, has launched a new solution that enables businesses to instantly access credit at competitive rates. While the global remittance market is dominated by bank to bank transfers – CardUp enables these payments 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. Card Up's solution leverages the company's status as a registered Visa Business Payment Solution Provider (BPSP) to help more businesses in Malaysia tap onto their underutilised credit limits.
The company said it charges a processing fee per transaction, but the company's status as a registered Visa BPSP means customised rates can be offered to businesses, helping companies maximise their cash flow at a competitive price.
"We are delighted to expand our services to Malaysian businesses, many of whom grappled both with cash flow problems and challenges digitising payables and receivables whilst finance teams work digitally in the new post pandemic world. We saw an opportunity to help them with a more flexible digital business payment facility to enable their business continuity," CardUp's chief executive officer, Nicki Ramsay.
"By launching in Malaysia, we enable enterprises to easily tap onto existing credit card lines to help them tide their cash flow during this uncertain period. Our collaboration with Visa allows us to double-down on this flexibility as our BPSP facility is competitively-priced and more convenient than using conventional credit lines as well as quicker with no need for applications or waiting times."
Many businesses across Malaysia saw their operations severely impacted during the height of the nation's movement control order (MCO). Even as the economy is slowly recovering, many businesses still face cashflow problems, with a survey by the SME Association of Malaysia showing that only 22 percent businesses have sufficient cash to last them for a month, whereas 27 percent can sustain
CardUp believes that its B2B facility will help the businesses benefit from a more flexible payment option to keep their businesses afloat during uncertain economic periods.