In a strategic collaboration, payment gateway and payout solution provider IppoPay has partnered with Visa to introduce credit card offerings for small business owners. This initiative aims to promote financial inclusion in small cities and rural areas, providing entrepreneurs with crucial access to working capital when needed.
Empowering Small Merchants
Sujai Raina, VP and Head of Business Development at Visa India, expressed optimism about the partnership, stating that the credit card offerings would empower small merchants by providing access to affordable payment solutions and working capital. The collaboration seeks to enhance financial freedom and planning for small businesses.
Visa’s Global Digital Enablement Goals Surpassed
Visa has surpassed its three-year goal of digitally enabling 50 million micro and small businesses globally by June 2023. Having assisted around 67 million businesses in meeting evolving payment needs, Visa focuses on digitizing payment processes, facilitating ways to pay for supplies, and providing financial skills through training and education.
Untapped Opportunity in India’s Small Business Segment
Mohan K, CEO and Founder of IppoPay, highlighted that the small business segment in India, comprising over 100 million businesses, remains underserved by conventional card providers. The partnership aims to address this gap, presenting an opportunity of over $330 billion that has yet to be tapped.
IppoPay’s Diverse Merchant Solutions
IppoPay offers a range of solutions to merchants, including QR UPI, prepaid cards, sound boxes, Point of Sale (PoS) devices, and digital loans. With over 5 lakh merchants already utilizing its services, IppoPay is well-positioned to meet the credit demands of small businesses.
Industry Initiatives for Financial Inclusion
This collaboration aligns with broader industry initiatives focused on supporting underserved businesses. In November, Visa and its non-profit arm, Visa Foundation, pledged $100 million to aid underserved and women-led micro and small businesses in APEC economies over five years. Other financial institutions, including SBI Card and AU Small Finance Bank, have also launched credit card products to cater to the unique needs of small businesses.