Froda and Visa expand partnership to enhance SME lending

By Gloria Methri

Swedish FinTech Froda has expanded its partnership with Visa to scale embedded SMB lending across Europe. This enables other FinTechs, banks, and neobanks to access Froda’s card-based embedded lending product to offer business loans to their customers.

The partnership aims to help SMBs access financing in real time through automated credit decisioning and instant Visa Direct payouts.

“The extended partnership marks an important step in evolving the SMB landscape in Europe. Our joint efforts to promote the card-based embedded lending solution underline our commitment to fostering innovation for our clients and partners so that they in turn can support the growth of small and medium-sized enterprises,” said Philip Konopik, Regional Managing Director Nordics & Baltics at Visa.

This partnership focuses on the adoption of a card-based embedded lending solution. Card-based lending operates similarly to a traditional business loan for SMBs but offers increased speed and convenience. It is widely accessible across markets, due to the extensive global network of Visa´s card infrastructure.

Olle Lundin, CEO and co-founder of Froda said, “This is a milestone for us and SMBs across Europe. We are excited about what we have achieved so far and are confident that our innovative approach to SMB lending will continue to make a positive impact. The expansion plans across Europe demonstrate our dedication to reaching more SMBs and driving economic empowerment through accessible financing solutions.”

Since the product was launched in June, card-based embedded lending is now available in Denmark via Lunar and in Germany via Kontist, a part of Ageras Group. The plan for the partnership is to embark on an ambitious expansion across Europe. The focus includes identifying new markets and partners. This expansion aligns with the companies’ commitment to providing accessible and innovative financial solutions to SMBs across Europe.