More than half of Europe's small businesses struggle to access finance. As a step in making business finance more accessible, Froda is expanding its partnership with Visa and scaling up its offering in Europe. This means that more fintech companies and banks can access Froda's card-based embedded lending product and offer business loans to their customers.
More than 50% of Europe's small businesses lack external finance, despite it being a fundamental factor for growth.* In times of economic stress, access to finance becomes even more important. The partnership between Froda and Visa will address this and help SMEs access finance in real time with automated credit decisions and payments through Visa Direct.
- "Card-based embedded lending is an important step in making business finance available to small and medium-sized enterprises in Europe. Through our joint effort, we hope to promote innovation and growth in Europe," says Philip Konopik, Regional Managing Director Nordics & Baltics at Visa.
Through the expanded partnership, Visa and Froda aim to bring card-based embedded lending to more players in more markets. The product works in the same way as a traditional business loan, but thanks to Visa's global card infrastructure, card-based embedded lending is both faster and easier to scale to different markets. This creates opportunities for other fintech companies and banks to both scale their operations and expand their offerings.
- The partnership with Visa is a major milestone for us, so it feels great to expand it. We are proud of what we have achieved so far and are convinced that the solution will help entrepreneurs in Europe, Olle Lundin, CEO and co-founder of Froda.
Card-based embedded lending was launched in June and is available in Denmark through Lunar and in Germany through Kontist, part of the Ageras Group. In 2024, Visa and Froda plan to expand the product to more markets and partners. This expansion is in line with Froda's vision to provide accessible and innovative financial solutions for small and medium-sized businesses across Europe.
- Since the product was launched in June, we have successfully launched it with two partners in two markets and seen a great interest within the industry. We look forward to expanding card-based embedded lending to further markets and giving more entrepreneurs access to finance," says Stella Snickare, VP Froda Embedded.
The product was launched in June and is available in Denmark through Lunar and in Germany through Kontist, part of the Ageras Group.
* Eurostat, Statista, Allianz, Froda
Posted
February 28, 2024
