Payment firm Swift Prepaid Solutions and small business financier Bitty Advance are collaborating on technology to accelerate small business access to merchant cash advances.
In a press release on Tuesday, Swift Prepaid announced that it will integrate its prepaid services to allow Bitty’s small business customers to immediately access virtual funds after obtaining a cash advance from the merchant. The funds can then be uploaded to a mobile wallet, including Apple Pay, Samsung Pay, and Google Pay.
Swift Prepaid also supports Bitty’s ability to provide immediate access to cash advances that are downloaded to business debit cards.
Their collaboration links Bitty to the Visa Direct functionality, allowing her to brand virtual and physical prepaid and debit cards linked to a business account.
“New and growing small businesses often need quick access to capital that meets basic needs such as inventory buying, payroll and marketing,” said Edward Siegel, CEO of Bitty Advance, in a press release. “Our new partnership with Swift [Prepaid] enables us to provide competitive instant financing options to these small business borrowers while seamlessly integrating Swift solutions into our branded customer journey. “
Patrick Crosson, vice president of sales for Swift Prepaid, Emerging Markets, added that financiers like Bitty need compliance and scalable solutions to meet the needs of their clients as they look beyond traditional lenders.
While the merchant cash advance can often get a negative reputation, B2B FinTech players have been working to rethink the role of the solution as alternative finance continues to evolve.
Still, last month New York Attorney General Barbara Underwood opened an investigation into the SME lending market, with a particular eye on those involved in cash advances to merchants. The investigation focuses on whether certain companies engaged in predatory or fraudulent practices, Bloomberg reported at the time, citing an anonymous source.