Kabbage expands into payment processing as part of its new suite of solutions for small businesses to manage cash flow
Image: Kabbage introduces a new payments solution. Photo: Courtesy of Kabbage Inc.
Kabbage, a fintech firm based in Atlanta, Georgia, has made general availability of its Kabbage Payments solution to its small business customers.
The new payment-processing solution is claimed to help small businesses in getting paid faster as simple as sending a text message.
Kabbage claims to have successfully run the beta programme and the release of the payment solution marks the first of several new products that it will launch in the coming months to enable small businesses to more efficiently manage their cash flow.
According to the fintech firm, two-thirds of its over 200,000 customers rely on invoicing to receive payments and wait for as long as 90 days to be paid.
Small businesses can now settle invoices within 24 hours
By using the technology that drives the company’s fully automated working capital solution, Kabbage Payments is claimed to reduce the time needed to receive payments in typical net-term invoicing. Kabbage said that with its payments solution, customers can settle invoices as quickly as 24 hours.
Kabbage Payments features a new custom pay link that solves a fundamental challenge for business owners relying on invoice payments. Customers can now create a unique URL for their business and send payment requests through texts, emails or the web to collect card payments securely and quickly.
With such flexibility, the custom pay link removes the need to manually create new accounts, open new payment orders and duplicate work for recurring invoices.
Kabbage CEO Rob Frohwein said: “Since 2011, we’ve helped hundreds of thousands of small businesses access over $8 billion in funding. We know first-hand a primary need is to cover cash-flow gaps while waiting to be paid.
“Kabbage Payments not only expands our suite of products, but the very definition of our company. We deeply believe in the mission of small businesses and understand what they need to succeed—namely, more time building their businesses and less time worrying about cash flow.”
Last month, Kabbage agreed to acquire the assets of Radius Intelligence, a small-business data platform. The deal allows the fintech to more deeply understand and serve small businesses as it can now add insights from more than 20 million US small businesses to its platform.
Radius has the ability to parse through numerous, disparate and complex data sets and unify them into a single data record.
The deal is part of Kabbage’s expansion of its technology platform to solve more comprehensive cash flow needs for small businesses. Radius’ insights are expected to enhance Kabbage’s ability to deliver customers the right experience at the right time.