Toqio and Visa have partnered to provide Visa commercial cards to businesses that don’t offer financial services.
With these solutions, Toqio’s corporate clients will be able to access and issue Visa commercial cards directly from its platform, which connects distributors and merchant providers with financial institutions, the companies said in a Wednesday (July 17) press release.
This solution is designed to meet the needs of distribution channels in which small- to medium-sized businesses (SMBs) are often the main sales channel, Eduardo Martinez Garcia, CEO and co-founder of Toqio, said in the release.
“These players are the weak link in the distribution channel and their liquidity and cash flow issues can have a direct impact on companies’ revenue potential and cash collection,” Martinez said in the release. “With Toqio, these companies can implement solutions that facilitate the flow of funds through the distribution channel, from the end customer to the manufacturer, and incorporate financing where and when it is needed most.”
By providing their distribution networks with access to greater liquidity, corporations can improve their value proposition to those companies, according to the release.
They can help small businesses that often struggle with low liquidity, barriers to some financial services and payment issues, the release said.
The new alliance of Toqio and Visa will give them greater access to funds, per the release.
“We have quickly understood that value that Visa offers beyond cards and how Toqio can leverage these money movement products to help businesses find new opportunities, drive efficiency and become the preferred financial channel for their customers,” Michael Galvin, chief operating officer and co-founder of Toqio, said in the release.
The formation of this partnership follows Toqio’s participation in the Visa Innovation Program Europe, which enable Visa to see the potential of the project first-hand, Eduaro Prieto, country manager of Visa in Spain, said in the release.
“This partnership demonstrates Visa’s dedication to fostering innovation and new payment flows leveraging the potential of open banking,” Prieto said.
Firms are increasingly using working capital management solutions that leverage commercial cards and virtual cards to manage their B2B spend, ensuring that they have enough capital on hand, PYMNTS reported in March.
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