by Fintech News Singapore
November 21, 2023
Visa has teamed up with United Overseas Bank Limited (UOB) and the Singapore-based fintech company Doxa to offer a payment solution for contractors in the Asia Pacific region.
This collaboration is aimed at providing faster and more efficient access to working capital for contractors through deep-tier financing.
Contractors, especially those lower in the supply chain, often experience extended payment cycles. This delay, typically ranging from 35 to 100 days, is due to cumbersome procedures involving claims submission, approvals, and payment processes, causing significant working capital challenges.
The Doxa Connex platform addresses this issue by streamlining the work certification process, thereby speeding up the payment timeline for contractors.
With Visa’s partnership, the Doxa platform has been enhanced to include embedded financing features. This allows subcontractors to receive payments for their services via UOB virtual cards, ahead of the invoice due dates, once their work claims are certified by developers or main contractors.
JTC Corporation (JTC) and Kimly Construction (Kimly) are the first to participate in this programme. They plan to conduct trials using their past project data to simulate the payment process on the Doxa Connex platform.
Adeline Kim, Country Manager for Singapore and Brunei, Visa said,
“Our collaboration with Doxa to develop this new solution as part of Visa Accelerator program has resulted in an exciting step forward for the construction industry.
UOB is the first issuer that we are working with to enable their clients to make payments to suppliers more efficiently using this embedded finance solution, powered by virtual cards.”
Edmund Ng, Chief Executive Officer for Doxa said,
“Designed to connect buyers, suppliers, and financiers, Doxa Connex offers a seamless, swift and secure trading experience. Our goal has always been to address these challenges head-on, and with this partnership, we are taking our solution to the next level.
This automated process is designed to facilitate more timely payments, ensuring that everyone in this industry manages their operations more smoothly.”
This post originally appeared on TechToday.