Visa, Froda, and Lunar announced the beginning of cooperation within the framework of a project aimed at launching a digital solution for business lending.
As a result of this partnership, nordic digital bank Lunar will be able to offer small and medium-sized business representatives access to loans through the built-in Froda platform and the ability to manage direct payments and repayments using a Visa card.
The joint press release of the companies says that the new solution for small and medium-sized businesses means the complete digitalization of financial services. The firms also note that the practical application of their technologies provides the most simplified access to credit funds and transactions in the shortest possible time.
Another advantage of the new solution, the partnership parties call the ability to repay loans with regular card payments. Business representatives will save time and effort in tracking and managing monthly bills.
Philip Konopik, Managing Director of Visa in the Nordic and Baltic countries, said that Froda technology offers a groundbreaking innovation for the ecosystem of embedded lending.
Currently, financial institutions of all levels, including both major international players and banks operating in the same region, are directing their efforts to update the entire set of existing mechanisms, starting with transaction processing and ending with services related to the movement of money.
More than 80% of banks offer or plan to offer customers the opportunity to use their enterprise resource planning (ERP) systems to access accounts and make payments to suppliers.
Lunar will make the embedded credit solution available to its small and medium-sized business customers in the second quarter of 2023. Other issuers of small and medium-sized business cards will have access to this solution using the Froda product based on the Application programming interface (API).
As we have reported earlier, Visa Partners With Tingo Mobile to Expand Digital Payment Channels Across Africa.