Visa has invested into and partnered with Israel-based Behalf a working capital solutions provider for SMBs.
As part of the deal, Visa will offer Behalf’s small-business clients a tokenised Visa Virtual Card, a credit-based service giving businesses the ability to make instant financing for purchases. Initially, this card will be deployed in the US, and release in other markets planned for later months.
Founded in 2012, Behalf is a financing provider that facilitates commerce between business to business vendors and their small and medium business customers.
Using data and technology, the New York-headquartered company allows vendor partners to offer business customers instant credit and flexible payment terms at the point of sale. Once qualified, Behalf customers can use their credit facility to fund purchases with virtually any vendor, including businesses on the MasterCard network.
Shahar Friedman, acting general manager for Visa in Israel, said, “Small businesses are the backbone of the global economy, and Visa is committed to enabling new payment experiences for these important customers.
“This partnership is a result of a close collaboration between the Visa Innovation Studio Tel Aviv and the dynamic Israeli start-up ecosystem to bring the power of the VisaNet global network to promising young companies in Israel such as Behalf.”
This investment from Visa is part of its commitment to invest up to $100m into FinTech startups.
Earlier in the year, Behalf received $150m in debt financing from Soros Fund Management and Viola Credit.
This deal is no Visa’s first into a digital financing platform this year, having previously invested into Latin America-based YellowPepper. The aim of the transaction is to boost Visa’s tokenised payment opportunities, and expanding the use of Visa Direct.
Copyright © 2018 FinTech Global
