Insights

New FinTech Solution by InstaReM Helps Singaporean SMEs Improve Cashflow

BizPay, the new service by InstaReM converts existing card limits into working capital for businesses; creates differentiated value for banks looking to increase usage of credit cards.

SINGAPORE, 17 June 2020 – InstaReM, the consumer and SME brand under global fintech platform Nium announced today the launch of a new service that helps Singaporean SMEs maximise their cash flow. The service, termed BizPay, utilises credit limits in corporate cards and converts them into working capital to help businesses make payments, including commercial rent or utilities or other supplier payments. Businesses will continue to enjoy commercial benefits that may be available on their corporate credit cards, such as membership rewards or cash rebates.

Securing loans or credit has never been easy for SMEs— the absence of a stable and profitable portfolio is seen as a drawback by banks and financial institutions. Even before the pandemic, 61 percent of Singaporean SMEs held low credit standings[1] and not more than 15 percent of SMEs in fast-growing economies had access to the credit they required[2]. The additional delays in payments induced by the pandemic have only aggravated this dearth of capital. While businesses may look to card-based payments to extend payment terms, the high transaction fees and FX markup act as a deterrent for payers as well as beneficiaries.

To help SMBs gain cashflows without the need to go for yet another bank application, InstaReM has launched BizPay, an online platform which enables businesses to use their corporate cards as a funding source for supplier payments. Leveraging InstaReM’s existing remittance platform, business would only need to type the name of the beneficiary, the amount and currency of payment and charge the whole payment to their corporate card for funding. There is no need for the beneficiary to be directly card accepting or to be onboarded as part of the payment process. Businesses now gain full control of costs by eliminating fees and charges associated with other credit solution options.

“In these unprecedented times that call for frugality like never before, the opportunity to maximise cash flow using resources that are already available is invaluable. Most companies in Singapore have an existing corporate credit card system that is used only for travel and expenses. With lockdowns bringing travel and business entertainment to a standstill, BizPay gives businesses a chance to utilise their credit lines optimally, while also creating a differentiated value for banks and financial institutions looking to generate usage of their corporate credit cards,” said Sanjiv Razdan, Global Head of Commercial Payments, Nium.

“This solution is unique because it does not require the beneficiary or the supplier to be directly card accepting. It removes the need for any supplier to be onboarded as part of the payment process. Once a business includes their corporate credit card as a payment source on BizPay platform, payments can be made to any corporate entity as beneficiary in multiple currencies at very affordable and competitive pricing.”

Learn more about BizPay.

Learn more about InstaReM’s other SME offerings at our refreshed website.

[1] https://www.experianplc.com/media/news/2020/business-optimism-among-singapore-smes-at-historic-low-amid-covid-19-uncertainties-sbf-experian-sme-index/

[2] https://www.weforum.org/agenda/2020/05/fintech-can-help-smes-recover-covid-19/

About Nium

Nium is a global financial technology platform redefining the way consumers and businesses send, spend and receive funds across borders. The company is continuously innovating to provide the most relevant and agile solutions to meet the needs of consumers and businesses, having evolved from solely focusing on consumer remittance via InstaReM, to also providing fintech solutions for businesses from 2019. Nium is regulated in Australia, Canada, European Union, Hong Kong, India, Indonesia, Japan, Malaysia, Singapore and the United States of America, and processes billions of dollars a year for banks and payments institutions, the next generation of e-commerce players, OTAs and retail users across the world. Nium’s investors include Visa, BRI Ventures, Vertex Ventures, Vertex Growth, Fullerton Financial Holdings, GSR Ventures, Rocket Internet, Global Founders Capital, SBI Japan, FMO (Netherlands Development Finance Company), MDI Ventures, Beacon Venture Capital and Atinum Investment.

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INSTAREM FOR BUSINESS

Instarem for business is a global payment solution for small and medium businesses.