The news: Capital under pressure, a UK-based fintech that problems small and medium-sized business (SME) credit cards, obtained a $ 100 million credit facility to fuel deeper expansion in the United States, as well as to strengthen its workforce in the region, by AltFi. The fintech initially launched in the US market in March and has more than 28,000 SMB card applicants in the United States so far.
Deepen Capital on Tap’s offerings in the United States: The United States is the capital of the tap the third operating market, after UK and Spain.
FinTech currently offers a type of American credit card, by its website, in partnership with Web banking. The card has limits ranging from $ 1,000 To $ 50,000, with 2% unlimited cashback.
Capital on Tap revealed that it loaned money to more than 100,000 SME since the start of its activities and that companies have spent more than $ 3.5 billion via its cards, AltFi reported.
The big takeaway: The company will face headwinds in the United States due to the crowded fintech market that focuses on corporate credit cards, especially as established players have broader product lines.
Brex, for example, possesses a card with several categories of points and now operates in corporate neobank, and Ramp offers 1.5% cash back associated with its supplement Ramp savings functionality. Going forward, Capital on Tap will need to build a differentiated product line if it hopes to be competitive.