Unlimit and Pagaloop Form Small Business Expense Management Pact

FinTech company Unlimit has launched a collaboration with Latin American B2B payments platform Pagaloop.

The partnership is designed to bolster the Pagaloop app’s credit and debit card processing capabilities, while ensuring high approval rates to bolster the company’s ongoing expansion in the region, according to a Thursday (Nov. 14) press release.

“We are excited to support Pagaloop in their goal to simplify expense management for small and medium-sized businesses in Mexico and beyond,” Martina Selser, head of account management at Unlimit Mexico, said in the release.

“We are certain that, together, we will be able to deliver a level of service to end customers that answers their needs and supports their businesses’ growth, while also removing existing barriers in their payment journeys.”

According to the release, Pagaloop’s solution helps businesses and individuals streamline their expenses by letting them more easily pay with credit cards in more places. The company’s interface lets users pay third-party providers, subcontractors and service providers, or make fixed payments such as payroll or rent even in situations when cards are not accepted.

Users benefit by having the amount charged to their credit card bill, with the option to pay in installments instead of lump sums, a solution the companies say is ideal for small and medium-sized businesses (SMBs).

“SMBs often struggle to obtain loans from traditional banks and would greatly benefit from better access to credit and increased financial flexibility to pay their various suppliers, many of which do not accept card payments,” the release said.

The partnership comes at a time when many businesses are saddled with “complicated and convoluted” expense management systems, as PYMNTS wrote last month. At the other end of the spectrum are companies who are replacing traditional methods with digital tools that can automate expense management via artificial intelligence and machine learning.

By integrating with accounting systems and providing real-time insights, these tools are strengthening financial transparency and assisting companies in getting a better view of cash flow and a better handle on tracking expenses.

But although B2B payments are experiencing expense management innovation, many businesses are using legacy infrastructure and traditional rails to make payments that don’t support the latest developments in digital payments.

“For companies with extensive legacy systems, the transition to a modern B2B payment platform requires time, investment and operational overhaul,” PYMNTS wrote. “Legacy infrastructure, often built on fragmented systems and siloed data, cannot easily adapt to the real-time, integrated functionality that today’s expense management tools offer.”

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