Press release -
Froda and Visa join forces with Checkout.com to enable Visa Direct for embedded business loans payouts
Froda, one of Sweden’s fastest growing fintechs, has announced a groundbreaking partnership with Visa and Checkout.com that revolutionizes the use of Visa Direct. The solution introduces innovative push-payment functionality for business lending, enabling seamless payouts and repayments for businesses across Europe.
Visa Direct is a processing capability that allows safe, convenient and real-time funds transfers to financial accounts using card credentials. The service is used by a wide variety of businesses worldwide, but its potential for business lending has remained untapped until now. Through this partnership, Froda leverages Visa's robust infrastructure to provide a secure, efficient and fast method of payouts for business loans.
– We are excited to establish this partnership with Visa and Checkout.com that is going to strengthen our Froda Embedded offering and empower banks, neobanks and fintechs across Europe to offer financing with fast and reliable funds processing. With access to Visa Direct we are able to further streamline the lending process and offer a seamless experience across markets, says Olle Lundin, co-founder and CEO of Froda.
The solution is made possible through a partnership with the global payment provider, Checkout.com, which provides access to Visa Direct and the Visa Token Service, enabling the solution. Thanks to the use of tokens, end-to-end payments can be processed without requiring manual entry of card details. This improves the customer experience by providing easy card usage. Visa Direct access is offered to Froda Embedded partners that are providers of Visa Business Cards.
– We are excited to be a part of this innovative card-based embedded lending product for SMEs. At Checkout.com, we are constantly looking for new innovative partnerships, products, and ways to solve complex challenges by leveraging payments. This partnership is definitely the stepping stone for the future of payments and embedded lending, says Adel Naamneh, VP Global Strategic Solutions, at Checkout.com
Unlike traditional lending methods that typically rely on bank transfers for payouts, Visa Direct utilizes push payment functionality where funds are transferred between accounts directly through Visa's extensive card network. The advantages of leveraging Visa Direct for business loans are numerous. Through an automated real-time credit assessment process, Froda can offer instant loan approvals. Visa Direct makes it possible to send real-time loan disbursements as well, significantly reducing the time from application to payout. Moreover, Visa Direct works the same way regardless of market. Making it possible for connected partners to scale their financing offering without having to implement new direct debit solutions.
– We are thrilled to be a part of this pioneering initiative together with Froda and Checkout.com. Through this, we are introducing a new transaction type that is only available through Visa cards. I believe that this is going to set a new standard for business lending for our clients, allowing them to empower businesses across Europe to grow and thrive, says Philip Konopik, Regional Managing Director at Visa in the Nordics and Baltics.
The product card-based embedded lending was introduced in February 2023 and launched on the Danish market in June the same year together with the digital bank Lunar. Visa Direct access is offered to Froda Embedded partners that are providers of Visa Business Cards.
Froda was founded in 2015 with a clear idea - to provide small and medium-sized businesses with the same opportunities to grow as large companies. The company's service makes it smooth and affordable for entrepreneurs to invest in their ideas. By digitizing the process, Froda has made it possible to help more businesses with financing tailored to their unique operations and needs. Simply put, it's a smarter business loan.
Checkout.com is a global payments solution provider that helps businesses and their communities thrive in the digital economy. Purpose-built with performance, scalability and speed in mind, our modular payments platform is ideal for enterprise businesses looking to seamlessly integrate better payment solutions. With a global team spread across 19 offices worldwide, we offer innovative solutions that flex to your needs, valuable insights that help you get smart about your payments’ performance, and expertise you can count on as you navigate the complexities of an ever-shifting world. Find out more at checkout.com.
Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at Visa.com.
Froda was founded in 2015 with a clear vision – to revolutionize the banking experience for entrepreneurs by making it easy and affordable to invest in their ideas. Today, Froda is one of the fastest-growing fintechs in the Nordics with large international growth plans. Froda is a fintech company with the ambition to help small businesses grow.
Froda is a regulated credit institution with government deposit guarantee and under the supervision of the Swedish Financial Supervisory Authority.