The push-payment product aims to reduce transaction time to “seconds rather than months”
Lunar’s customers will gain access to business loans through Froda’s proprietary lending platform, featuring direct payments and repayments via Visa’s cards.
The solution is aimed at SMEs, as startups and small businesses need finance to invest for future growth, and aims to remove barriers by allowing loan repayments and payouts to be made directly through a payment card.
The push-payment product aims to reduce transaction time to “seconds rather than months”.
The embedded lending solution will be available to Lunar’s customers in Q2 2023. More SME card issuers may join later.
Olle Lundin, chief executive officer at Froda, commented: “Our goal was to create a new ecosystem within embedded lending that would offer entrepreneurs easy access to financing and instant payouts.
“With the support of Visa, we are able to offer this innovative solution to both neobanks and incumbent banks across multiple markets.”
Mats Persson Bergius, general manager of Sweden at Lunar, said: “It’s a fantastic opportunity to be a part of this collaboration as it allows us to offer our customers a fully digital experience with card enrolment as part of the loan application process.
“This eliminates the need for a separate enrolment for direct debit solutions or collecting details for invoicing.”