Visa Invests In Israeli Startup Behalf To Support Small Business Financing
Financial services giant Visa has announced Tuesday they will team up with Israeli startup to “support small business growth through easy-to-access capital and financing,” a statement from the US multinational corporation said. The partnership includes an investment, whose details were not disclosed.
Behalf is the first investment in an Israeli company made by Visa, following the launch of Visa Innovation Studio Tel Aviv in February, which was established as a shared space for the company to work with Israeli FinTech startups “developing the next generation of payment solutions,” Visa said.
Visa will offer Behalf’s small business clients a tokenized Visa Virtual Card as part of the investment. This credit-based payment solution gives businesses instant financing for their business purchases. The Visa Virtual Card will first be offered in the United States and is expected to expand its offerings to other markets in the coming months.
“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,” said Benjy Feinberg, Behalf’s chief executive officer. “We are proud to partner with Visa with the goal of making purchases easier.”
The investment was made through the company’s $100 million venture investment fund, which focuses on fintech startups in Europe and Israel, Israeli business daily CTech by Calcalist reported in June.
“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,” said David Simon, global head of small business and medium enterprises for Visa.
The Ra’anana-based startup Behalf offers short-term financing with flexible repayment terms to US-based businesses. The company pays vendors directly on behalf of their small business clients for the purchase of goods or services.
Behalf offers short-term financing with flexible repayment terms to U.S. based businesses. Behalf pays vendors directly, on behalf of the small business, for the purchase of goods or services.
“Small businesses are the backbone of the global economy, and Visa is committed to enabling new payment experiences for these important customers. This partnership is a result of a close collaboration between the Visa Innovation Studio Tel Aviv and the dynamic Israeli start-up ecosystem to bring the power of the VisaNet global network to promising young companies in Israel such as Behalf,” Shahar Friedman, acting general manager for Visa in Israel, said.