Cross-border small business payments company Veem is partnering with America’s Credit Union (ACU) to expand its reach to small business (SMB) customers.
ACU will link its SMB clients to Veem’s global payment services, the companies said in a press release on Wednesday (May 2). In a statement, Veem VP of Business Development Olivier Veyrac said the collaboration will allow small business owners to send and receive money across borders “without the hassle and high fees most banks impose on small businesses.”
ACU, a not-for-profit financial cooperative, said banks often “overlook” small business customers, according to ACU Director of Business Services Kristy Ybarra in another statement.
“By partnering with Veem, we are able to save our customers time and money,” said Ybarra, adding that one ACU small business customer said it plans to save $30,000 this year by using Veem services.
Earlier this year, Veem launched an initiative to expand its global payment services to third parties via API, revealing in February that it is working with logistics company Cargocentric, digital staffing solution provider EliteWork, accounting firm HireAthena and virtual reality company SpringboardVR, which have integrated Veem’s capabilities.
Last year, the company announced $24 million in funding from National Australia Bank Ventures, GV and SBI Investment Co., followed by another collaboration with small business accounting platform Xero, which enables businesses to automate invoice payment processes within the Xero platform.
ACU’s enhancement of small business services comes as the U.S. Small Business Administration (SBA) begins to turn to the credit union industry to revive small business lending. In January, the SBA recommended an increase on the cap of assets that credit unions can invest in SMB members.
Currently, credit unions cannot invest more than 12.25 percent of total assets into SMB loans, but according to the CBA, credit unions have more than doubled small business lending activity between 2008 and 2016, totaling $60 billion; during that time, the SBA said, bank lending to SMBs dropped by nearly $100 billion.