Visa, a world leader in digital payments, today announced its partnership with United Overseas Bank Limited (UOB) and Singapore-based Fintech, Doxa to facilitate quicker and seamless payments for contractors, via deep-tier financing.
This collaboration is the first of its kind use case in Asia Pacific and will help contractors gain faster access to working capital. Traditionally, contractors, particularly those further down the supply chain, have faced long payment cycles due to complex claims submission, lengthy approvals, and payment processes. This often stretches up to 35 to 100 days, and results in a strain in working capital for these contractors.
The Doxa Connex platform significantly reduces time that contractors get paid by streamlining the work certification process. In partnership with Visa, the Doxa platform has further been enhanced to provide embedded financing capabilities. Once developers or main contractors certifies the work claim, subcontractors will be given the option to be paid for their services through UOB virtual cards, ahead of the invoice due date.
The first two companies participating in the programme are JTC Corporation (JTC) and Kimly Construction (Kimly). They will be conducting trials using their past projects to simulate on the Doxa Connex platform for their payment process.
Adeline Kim, country manager for Singapore and Brunei, Visa said: "Our collaboration with Doxa to develop this new solution as part of Visa Accelerator programme 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. We look forward to working with other partners to make payments for contractors more efficient and help them improve working capital so that they can focus on running their business.”
Philip Lim, regional head of commercial solutions, commented: "At UOB, we have consistently worked towards staying at the forefront of innovative solutions that address the needs of industry. Our partnership with Visa and Doxa reflects our dedication to utilising digital technology to enhance and streamline digital payments for corporates, especially in sectors like real estate and construction where payment processes remain cumbersome and inefficient. We believe this initiative will contribute positively to efficiency and transparency for everyone involved.
Edmund Ng, CEO of Doxa, elaborated on the efficiency of the system, saying: "Doxa has pioneered digital advancements in procurement and trade financing with our flagship product, Doxa Connex. 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."
Re-disseminated by The Asian Banker