ADELAIDE, South Australia – Funding Options former directors partnered with Funding Circle’s first engineer to launch a credit card in Australia, while SplitIt and QuickFee announce partnership for expanded PayLater Services.
Three former executives and workers of the reputed finance broking firm, Funding Options, and the renowned lending marketplace, Funding Circle teamed up to establish a new banking-powered Australian credit card.
Former Funding Options managing director Ryan Edwards-Pritchard, ex-11:FS consultant Edo Omoniyi, and Funding Circle’s first-ever in-house engineer Steve Martin developed a credit card patterned to the fintech-style corporate card. The giant trio used the design of Cape, an Australian-based fintech company. This credit card launch’s announcement was already given to the public, but the launch will not happen until February of 2021.
According to the credit card authors, this new fintech card will provide a broader platform of banking tools for business firms to assist them in their growth. Furthermore, these banking tools will provide opportunities for firms to optimize cash flow and finance investments effectively.
Edwards-Pritchard stated that it is the brand’s effort to support medium and small businesses to grow and develop by providing better access to work capital in their beginning stages. He emphasized that people in the digital firm sectors and fintech are already familiar with the difficulties many starting businesses face when accessing credit. He enumerated a few factors that might have caused these hurdles, citing reasons such as non-access to business lending offers, equity investments, or even lack of knowledge and confidence about external finance.
As he stated, it is the exact reason they thought of launching a credit card that will eliminate these hindrances so that small digital businesses may benefit. He further highlighted that these financial resources should be readily available for these businesses in the digital platform whenever the needs arise, and not only limited when their banks approve of it.
According to him, this credit card’s primary target is small start-up businesses seeking more convenient and efficient options than stringent bank loan processes.
Some of the features highlighted in the credit cards include:
- Live credit card file management
- Flexible credit access
- Repayment linked to revenues
- Performance forecast
- Buy now, pay later option
On the other hand, other giant banks have also talked about improving credit card services. This month, both the Commonwealth Bank of Australia and the National Australian Bank have already announced their new zero-interest credit cards. This move will also benefit Australian consumers when they are already launched in the coming months.
However, the purpose of these newly launched and announced credit cards is mainly to snatch customers back from the growing Buy Now, Pay Later platform.
Recent reports have already mentioned a drop in the new credit card applications and utilization, and the extensive Buy Now, Pay Later platform is to blame.
Although this platform’s target is personal consumers rather than small business units as targeted by the fintech credit card announced, Buy Now, Pay Later still immensely affects the overall credit card consumers.
In a recent report, Buy Now, Pay Later is still set to expand to the professional services industry as Splitit joins forces with QuickFee. This announcement mentions the partnership of the global payment solutions provider Splitit Payments Ltd. to the renowned professional services payment provider, QuickFee.
This partnership allows Splitit’s Buy Now, Pay Later services, to stretch its coverage globally and other industries. As Buy Now, Pay Later services penetrate the professional services industry, the Australian and American markets will gain the best benefits.
Even small accounting companies and law firms may use faster payment transactions and more convenient access to services in this new feature. Participating companies and firms will be allowed to offer installment payments so that clients and other partner firms can access legal and accounting services quickly without strict payment requirements.
Moreover, QuickFee’s PayLater offers also improve and extend to the said industry. This program ensures that the participating firms receive payments based on their personally-set terms without any hidden charges or fees. Customers may enjoy the leisure of stretching the payment of their invoices to up to 12 months of installment, totally flexible depending on their income and cash flow.
QuickFee’s existing and new coming clients will enjoy the extended Pay Later services in the following weeks, while Splitit services will be directly integrated into QuickFee’s existing interface. SplitIt’s expanded services will also directly apply to QuickFee’s clients. Clients need only to use QuickFee’s platform to choose their best-fitted installment-free payment option and key in their credit card information to access the service. This process can be done as soon as the participating firms send the invoice to their clients, paying the services in four installments.
To date, QuickFee already processes over 300 million dollars worth of service payments in the professional services payment sector alone. It covers over 1,200 professional services firms globally and. This new project aims to reach 650,000 law firms and accounting service companies within Australia and the US. On the other hand, SplitIt currently serves over 1,000 e-commerce merchants.
This continuous growth in the Buy Now, Pay Later platforms still sends a rippling effect to many banking services and firms. Many consumers’ continuous support to the Buy Now, Pay Later services are still set to provide more challenges to banking services, matching the convenience offered by the platform. Nevertheless, these continuous efforts for innovation and improvement of services have significant effects on Australian consumers.