Sweden-based Froda has announced its partnership with Visa and Checkout.com in order to enable Visa Direct for embedded business loans payouts. The solution is set to introduce improved push-payment functionality for business lending, which will enable efficient and secure payouts and repayments for companies and firms across the region of Europe.

Following this partnership, Froda will use Visa’s infrastructure in order to deliver secure and fast methods of payouts for business loans. With the needed access to Visa Direct, Froda will be enabled to further streamline the lending procedure in order to provide an optimised experience across markets, as well as to give banks, neobanks, fintechs, and financial institutions the possibility to provide financing services with reliable funds processing. Checkout.com will provide access to Visa Direct and the Visa Token Service.

Through the use of tokens, end-to-end payments will be processed without the need for manual entry of card details or financial data. This possibility optimises the overall client experience by offering easy and secure card usage. More information on the partnership Visa Direct was designed to utilise push payment functionality where the funds are transferred between accounts in a direct manner, through the extensive card network of Visa.

By leveraging an automated real-time credit assessment procedure, Froda will be able to deliver instant loan approval as well. Through the use of Visa Direct, the company is set to be enabled to send real-time loan disbursement in order to reduce the time for application payout as well. At the same time, Visa’s tool makes it possible for connected collaborators and partners to scale their financing offerings without the need to implement a new suite of direct debit solutions.

The access to Visa Direct is offered to Froda Embedded for partners that are providers of the Visa Business Cards. Froda and Visa’s past partnerships Sweden-based fintech Froda announced its collaboration with digital challenger bank Lunar and the multinational payment card solutions corporation Visa in order to launch its card-based embedded lending service for small businesses that are based in Denmark. The launch of Froda’s embedded lending tool followed a successful test period, with the aim set on improving the manner in which Danish small companies access financing and secure the needed capital to drive development in a fast and safe way. Earlier in February 2023, Froda, Lunar, and Visa partnered to deliver a small and medium-sized enterprise (SME) lending service in order to improve the manner in which firms and businesses access financing for their development plans.

The product was developed to leverage push-payment functionality for financing and aimed to decrease transaction times to seconds instead of months. Froda was set to deliver the service as an API-based white-label solution in collaboration with multiple Visa business card issuers. SMEs were enabled to apply for business loans straight from their card provider.

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