Last year, we asked experts how to overcome the challenges of FinTech, a new and emerging industry in the region.
CardUp, a card payments platform for cash management, was one of the 19 startups selected from 655 applications globally for the Global Hackcelerator.
It basically lets you pay for everything, including payroll, rent, taxes, and insurance premiums with your credit card and then rolling the card benefits over to the cardholder – you.
Now, the Singapore-based FinTech startup has raised S$2.2 million in a funding round led by Sequoia India and SeedPlus.
Reap Real Rewards From Credit Card Spend
The funds will be used to expand their payments and cash flow management platform to SMEs in Singapore.
Smaller enterprises tend to face cash flow problems because customers do not pay on time. This eventually affects their ability to get a loan from the bank.
So by clearing their credit card debt, they will be freed up from this burden and eventually be able to access to more working capital.
Recurring payments like rent, employees’ salaries, supplier payments are usually done via bank transfers – CardUp allows the user to pay with credit card, whether or not the recipients accept that form of payment.
CEO of CardUp Nicki Ramsay started it so consumers can maximise the benefits of the card like extended credit terms and earning reward points on big payments, literally making paying a “rewarding experience”.
As for SMEs, using the CardUp service gives them instant access to interest-free credit of up to 55 days. More savings means more budget to spend.
Both types of users – consumers and businesses- have the added incentive to earn miles, or get cashback, or points.
“Individuals and businesses can improve their cash flow by tapping into pre-approved credit lines on their card, whilst banks and payment networks are able to increase overall credit card spend by capturing a new market segment,” Ms Ramsay said.
Simplifying Credit Card Payment
Some of the services on their website include scheduling recurring payments, providing invoicing tools, and allow users to receive real-time payment updates.
Existing card payment solutions, like Paypal, for example, requires recipients to also have a Paypal account in order to receive payment.
However, CardUp requires no participation from recipients.
This hassle-free way of paying has allowed the company to reach an average monthly user growth rate of 41% since its launch in late 2016.
Over S$55 million in payments has been made on the platform in the past 12 months. That’s 1% of overall credit card spend growth in Singapore from 2016 to 2017.
CardUp is partnering major banks and credit card providers like UOB, Citibank, Bank of China, and Mastercard.