Visa has invested in Israel-based point-of-sale financing provider Behalf, tapping in to a growing trend to provide working capital for small merchants and on-demand purchase financing through the checkout.
Founded in 2012, Behalf operates in the B2B sector, offering financing through its merchant network for business sales. Companies who accept Behalf get paid immediately - at a transaction cost far lower than credit cards. Meanwhile, companies choosing to pay with Behalf instead of cash or credit card get to customise their own payment schedule for each purchase.
Visa has not divulged the value of its investment, it's first in an Israeli startup, but has confirmed a working relationship with the firm, which will entail the distribution of virtual cards to Behalf's small business clients in the US.
Shahar Friedman, acting general manager for Visa in Israel, says: "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."