InstaReM Expands Fintech Solution that Helps SMBs Improve Cashflow to Australia
BizPay converts existing card limits into working capital for businesses and creates differentiated value for banks looking to increase usage of credit cards.
SINGAPORE, 7 July 2020
InstaReM, the consumer and SMB brand under global fintech platform Nium announced the launch of SMB fintech solution BizPay in Australia. BizPay utilises credit limits in corporate cards and converts them into working capital to help businesses make payments, including commercial rent, utilities or other supplier payments. The announcement comes shortly after the launch of BizPay in Singapore earlier in June.
SMBs often face challenges in securing loans or credits from banks or financial institutions — the absence of a stable and profitable portfolio is seen as a drawback by banks and financial institutions. Even before the outbreak, only 52 percent of SMBs in Australia managed to get the loan needed . Delay in payments caused by COVID-19 has further exacerbated credit problems faced by SMBs. 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 using existing credit lines, 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, a 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.
“COVID-19 is proving to be a litmus test of resilience for businesses worldwide. It has caused significant disruption to working capital cycles and intensified the legacy liquidity concerns of SMBs. In such a situation, a means to generate funds using available credit resources emerges as a promising solution for businesses. Most companies in Australia would have an existing corporate credit card system from financial institutions that is used for travel and entertainment expenses. With social distancing measures and travel lockdowns bringing business travel and entertainment to a standstill, BizPay gives companies a chance to utilise their existing card credit lines optimally, while also creating a differentiated value for banks and financial institutions looking to generate usage of their credit cards,” said Sanjiv Razdan, Global Head of Commercial Payments, Nium.
For more information about BizPay, please log on to: https://www.instarem.com/en-au/bizpay. For information about InstaReM’s other SME offerings, please visit our refreshed website here: https://www.instarem.com/en-au/business.
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. 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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