Three financial firms – Visa, Froda and Lunar – have announced a global partnership and are launching a technology aimed at resolving push-payment problems.
The product – which utilises push-payment functionality for financing – aims to reduce transaction times to mere seconds. Ordinarily, this process takes months.
Froda has formed a partnership with the banking giant to develop a brand-new loan solution for businesses. Initially, Froda and Visa are joining forces with the Nordic digital bank Lunar.
Within the framework of the partnership, Lunar’s customers gain access to business loans through Froda’s proprietary embedded lending platform, featuring direct payments and repayments via Visa’s card. Visa’s presence in over 200 countries and territories provides a consistent experience regardless of market, making the product globally scalable.
Froda CEO Olle Lundin said, “I am thrilled to announce our collaboration with Visa and Lunar to bring a new level of convenience and efficiency to the world of business lending for SMEs. Our goal was to create a new ecosystem within embedded lending that would offer entrepreneurs easy access to financing and instant payouts.
“With the support of Visa, we are able to offer this innovative solution to both neobanks and incumbent banks across multiple markets. We couldn’t be more excited about this partnership and look forward to seeing this new ecosystem grow.
Philip Konopik – regional managing director Nordics and Baltics at Visa – added, “At Visa, we are constantly seeking new innovative ways to leverage the use of card infrastructure. The solution Froda has developed offers something new to the embedded lending ecosystem. We are very excited to be a part of this and can’t wait to see the impact it will have on small business lending.”
Visa researchers previously investigated how to enable automatic recurring payments for self-custodial crypto wallets.
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