Credit card giant Visa (NYSE: V) announced on Tuesday it has invested and partnership with Israel startup Behalf to support small business growth through easy-to-access capital and financing. The company reported that this partnership and investment is part of its $100 million Visa FinTech Investment Program. Founded in 2012, Behalf describes itself as an alternative financing provider for American small and medium-sized businesses.
“B2B merchants can fit Behalf seamlessly into their eCommerce checkout flow, providing their business customers with more buying power and payment flexibility. Behalf increases sales and improves cash flow for both merchants and their business customers.”
Visa revealed that as part of the investment, it will offer Behalf’s small-business clients a tokenized Visa Virtual Card, a credit-based payment solution that gives businesses instant financing for their business purchases. Visa also noted that the partnership supports its global strategy to extend its products and capabilities to small businesses through collaborations with start-ups and FinTechs that help redefine and enhance the payments experience. While sharing more details about the partnership and investment, David Simon, global head of small business and medium enterprises for Visa, stated:
“Behalf has demonstrated a commitment to expanding the purchasing power of small businesses by using digital payments to offer faster, more convenient and secure experiences. This partnership is another great example of how Visa partners with FinTech companies to help improve digital experiences and bring new solutions to market in order to overcome common small business challenges.”
Benjy Feinberg, Behalf’s CEO, also commented:
“The Behalf platform offers affordable, on-demand purchase financing. Our network of B2B merchants can fit Behalf seamlessly into their eCommerce flow, receive payment immediately and provide their business customers with more buying power and flexible payment options at checkout. We are proud to partner with Visa with the goal of making purchases easier. I’m excited by the opportunities ahead.”
Visa added that Behalf is the first investment made by Visa in an Israeli company. It follows the Spring 2018 launch of the Visa Innovation Studio in Tel Aviv.