Categories: B2B Payments

Corporate Cards Find Opportunity (And Funding) In New B2B Use Cases

B2B FinTechs are once again showing off the versatility of the corporate card.

While QuickBooks is piloting card payments on invoices powered by PayPal, Airwallex is readying the launch of its own corporate card — both physical and virtual — designed to enable cross-border payments.

In Asia, venture capitalists have backed two commercial card startups — one in China, targeting employee expense management, and one in India, with a focus on linking startups to credit without the need for a personal guarantee.

Below, PYMNTS rounds up the latest in commercial card innovation.

QuickBooks Adds Card Payment Support

Although QuickBooks Connect’s event was canceled due to the coronavirus earlier this month, Intuit has made public the new product enhancements that were originally planned to be announced during the conference.

Among those announcements includes a deepened integration with PayPal, which allows small businesses using QuickBooks to send out invoices with a feature enabling debit and credit card payment on those bills, facilitated by PayPal. According to EnterpriseTimes.co.uk, QuickBooks did not reveal the special rates PayPal is offering the platform, with reports noting that the feature is currently in closed pilot phase.

In addition to adding support for card payments on invoices, QuickBooks upgrades also include a cash flow planning tool, invoice payment reminders, open banking support, receipt data capture and payroll compliance.

Airwallex Readies B2B X-Border Card

FinTech Airwallex recently announced a partnership with i2c, which has been chosen as the payments processor for Airwallex’s commercial card solution designed for cross-border B2B payments.

The Airwallex Borderless Card is a multi-currency card that connects businesses to both virtual and physical card solutions for global payment (Airwallex will first release the card in its virtual form, a press release noted). The card supports 10 different currencies and connects corporate payers to Airwallex’s exchange rates in real time, with the company pointing to the card’s support for efficiency and speed in global payments.

The card, which is geared toward payments made to suppliers, subsidiaries, clients and business partners, will first roll out in Australia, with plans to debut in the U.K. and Hong Kong at a later date, the company said.

VCs Back V-Card Tool For Expense Management

In China, venture capitalists have placed $36 million in Fenbeitong, a business expense management startup that recently introduced virtual card (v-card) payment capabilities to augment its product offering, the latest example of FinTechs exploring how to combine commercial card technology with value-added tools like spend analysis. In addition to the new v-card capabilities, reports in China Money Network said the company has also recently debuted controls for pre-transaction compliance, as well as features to manage post-transaction processes.

The Series B+ investment was led by Eight Roads, Ribbit Capital and Glade Brook Capital, while BitRock Capital and existing backers also participated. With the new funding, Fenbeitong CEO Lan Xi said the firm will invest in its staff to focus on research and development, and expand its product capability to address more payment scenarios. The company also plans to establish partnerships with an array of other enterprise platforms to more seamlessly imbed itself in users’ back offices.

In a statement, Ribbit Capital partner Ray Chua also highlighted the startup’s mobile payment functionality as a particular benefit for corporates and their employees, highlighting another opportunity for FinTechs to build value upon mobile-friendly commercial cards.

India Startup Lands Funding For Card For Startups

Over in India, meanwhile, venture capitalists placed their bets on a commercial card startup with a different goal in mind: connect startups, which often lack credit histories or collateral for personal guarantees, to a corporate card.

Karbon Card secured $2 million in funding, according to VCCircle reports, with executives from Cred, Pine Labs, Jitendra Gupta and others participating. Karbon said it will use the funding to invest in product development, market expansion and operation, adding that it is looking to connect startups to much-needed credit that will help them grow and succeed.

In addition to credit, the Karbon Card also connects small businesses to a rewards program tailored to startups, with credit for Amazon Web Services or discounts at various brands like Uber.

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LATEST PYMNTS REPORT: MARCH 2020 B2B API TRACKER

B2B APIs aren’t just for large enterprises anymore — middle-market firms and SMBs now realize their potential for enabling low-cost access to real-time payments and account data. But those capabilities are only the tip of the API iceberg, says HSBC global head of liquidity and cash management Diane Reyes. In this month’s B2B API Tracker, Reyes explains how the next wave of banking APIs could fight payments fraud and proactively alert middle-market treasurers to investment opportunities.

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