In an exclusive interaction with YourStory, Harshil Mathur, Co-founder and CEO, Razorpay said that the fintech unicorn and Visa have launched RazorpayX Corporate Card. The aim of these bank-issued cards is to provide relief and stability to the financial operations of startups and SMEs.
In November 2019, Razorpay had launched corporate credit cards for all businesses. This new card is specifically designed for small business owners to weather the impact of COVID-19.
"Credit is one of the biggest requirements for businesses today. It is one of the problems we have been looking to solve for sometime. The idea is to help startups and SMEs get a corporate credit card in the name of the company," said Harshil. He explained that the card will be issued on the basis of cash flows of the business, adding that it is also an easy form of credit for SMEs.
Razorpay Corporate cards
Harshil explained close to one-third of the small businesses segments dip into their personal funds to stay afloat, especially in the times of the pandemic. "Today, if you look at capital or credit card facility per say, it is restricted to large businesses. The SME credit finance is still underserved," he added. Apart from that, the rates are high and not all businesses can avail this.
"The RazorpayX corporate card helps solve this access problem that most startups face. Even when we started Razorpay we had faced this problem of getting the right card for any of our hosting needs or any expenses that we may incur," said Harshil.
The card also aims to make managing financing simpler. The team is also looking to make reporting and compliance smoother for startups and SMEs. The team is aiming to touch 50,000 entrepreneurs in the next four months. The credit limit on the card will start from Rs 50,000 and can go upto Rs 25 lakh.
Shailesh Paul, Head of Merchant Sales and Acquiring, India and South Asia, Visa said, “Small and medium businesses are among the most impacted by the pandemic across the world. This segment contributes to almost 40 percent of India’s GDP and it is essential that we make it simpler for them to make and accept payments, and access credit, in a seamless, digitised manner. We are delighted to extend our partnership with RazorpayX to launch the RazorpayX Corporate Card which will provide access to secure payments and financing for underserved small and medium business owners.”
The idea is to help businesses free up their working capital expenses with zero personal risk and liability and a convenient repayment offering of up to 45 days of interest-free credit. The team also aims to provide the business owners with easy financing and improved cash flows. The card will help entrepreneurs setup recurring and non-recurring online payments and also monitor monthly operational expenses — utilities, digital marketing, non-recurring and recurring online payments, and replenish inventory in a more efficient manner.
Business can also extend this corporate card to their employees to create a smooth reimbursement experience. It can be used to make online payments as well as purchases at a PoS in a brick-and-mortar.
Edited by Kanishk Singh
Link : https://yourstory.com/2020/11/razorpayx-visa-sme-corporate-credit-cards-fintech-harshil-mathur
Author :- Sindhu Kashyaap ( )
November 26, 2020 at 11:35AM
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