The goal of the partnership is to provide “relief and stability” for small- to medium-sized business (SMB) owners, the companies said in the post.
“This new card is specifically designed for small business owners to weather the impact of COVID-19,” the post stated.
Harshil said in the post that the new card, called the RazorpayX Corporate Card, is intended to help with credit, which he called “one of the biggest requirements for businesses today.” He said the idea is to help the close to one-third of businesses who needed to dip into personal funds to help survive during the pandemic.
“The idea is to help startups and [SMBs] get a corporate credit card in the name of the company,” said Harshil in the post, adding the card would be issued for the value of cash flows to business, which is a simple form of credit for SMBs.
Harshil said currently, capital and credit resources are restricted to larger companies, with high rates not affordable to all businesses, and he wants to change that, according to the post.
The new Razorpay card will help make financing simpler and make reporting and compliance smoother, he said in the post.
Shailesh Paul, head of Merchant Sales and Acquiring, India and South Asia with Visa, said in the post that SMBs are “among the most impacted by the pandemic.”
“This segment contributes to almost 40 percent of India’s GDP, and it is essential that we make it simpler for them to make and accept payments and access credit in a seamless, digitized manner,” he said, according to the post. “We are delighted to extend our partnership with RazorpayX to launch the RazorpayX Corporate Card which will provide access to secure payments and financing for underserved small and medium business owners.”
Razorpay recently hit unicorn status, meaning it is valued at over $1 billion, after a fundraising round where it landed $100 million.