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Visa (V), Fundbox Tie Up for Digital Aid to Small Businesses

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Visa Inc. (V - Free Report) recently joined forces with Fundbox, the embedded working capital platform for small businesses to introduce digital payment offerings to boost the latter’s platform. The offerings will be launched across the market in the form of cards, installments or disbursement.

In the initial stage of the tie-up, Visa and Fundbox will work together to roll out the Pathward, N.A.-issued Fundbox Flex Visa Debit Card that assures enhanced cash outflow management by small business clients.

The Fundbox Flex Visa Debit Card incorporates the Flex Pay capability (a spend management solution that eases management of payments and funding of expenses by business owners) to benefit card-accepting merchants by offering hassle-free payments linked with travel, supplies and incidentals.

Integrating Flex Pay within the Fundbox Flex Visa Debit Card seems a prudent decision as the former exhibited a robust performance and significantly boosted prospects of the Fundbox’s working capital platform.
Apart from unveiling the advanced debit card, Visa will team up with Fundbox to launch an array of payment products in the coming months.  The offerings range from extending a Buy Now, Pay Later (BNPL) solution — aiming to address the need for offering flexible payment options by small businesses at the time of purchases — to a push-to-card transfer option that will leverage the real-time money movement network of Visa (Visa Direct) for accelerated fund disbursement.

Initiatives similar to the latest one reinforce Visa’s sincere efforts to pave the way for a widespread adoption of digital means by small businesses. The integration of digitization within its operations might help small business units achieve a competitive edge amid the ongoing trend to go digital.

The recent collaboration also bears testament to V’s longstanding commitment to digitally empower 50 million small businesses by 2023. As one of the leaders in the digital payments, Visa is backed with innovative technologies and a secure payments network. This seems to further ease its endeavor of bringing more small businesses under the ambit of a growing digital economy.

Visa’s recent tie-up with Fundbox can also be termed as a time opportune move owing to the significant formation of new businesses as furnished by the latest U.S. Census data. The source reveals submission of new business applications at a record figure of 5.4 million in 2021. The Global Back to Business Study conducted by V also substantiates the growing inclination of small businesses toward adopting digital payments. 73% of small businesses surveyed in the Visa’s study believe that newer payment offerings are integral to their business growth, while 59% stated that they either already adopted online payments or have plans to go digital completely in the next couple of years.

Visa is always committed to providing necessary help to small business units, ranging from technological assistance to empowering them with enhanced payment solutions. V has been catering to the unique needs of small and medium-sized businesses for a while through the Small Business Hub, launched in 2020.

Shares of Visa have gained 7% in the past six months against the industry’s decline of 5%. V currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Similar to Visa, other companies making concerted efforts to help small businesses include American Express Company (AXP - Free Report) , Mastercard Incorporated (MA - Free Report) and Global Payments Inc. (GPN - Free Report) .

To benefit small businesses, American Express continues to undertake a host of measures focused on technological upgrades, introduction of secure digital solutions and the provision of assistance to businesses in regulating payments. The Global Commercial Services segment of AXP issues an array of small business cards across the globe.

Mastercard has always been committed to providing necessary assistance to small businesses, ranging from extending technological enhancements to building partnerships with several financial institutions. MA constantly undertakes substantial investments to back small businesses.

Global Payments works closely with several small and midsize businesses, and helps them roll out enhanced and secure payment technology solutions. GPN equips these businesses with a wholehearted acceptance of payments across varied channels, thus paving the way for them to operate more efficiently.

Shares of American Express, Mastercard and Global Payments have gained 5.2%, 11.7% and 4.9%, respectively, in the past six months.