Visa, the digital payments leader, has partnered with United Overseas Bank Limited (UOB) and Singapore-based fintech, Doxa to facilitate quicker and seamless payments for contractors, via deep-tier financing.
The collaboration between Visa, UOB and Doxa is the first-of-its-kind use case in Asia Pacific and hopes to 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 on working capital for these contractors.
The Doxa Connex platform looks to reduce the time it takes for contractors to 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 certify 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 and Kimly Construction. They will conduct trials using their past projects to simulate on the Doxa Connex platform for their payment process.
Adeline Kim, country manager for Singapore and Brunei at Visa, said: “Our collaboration with Doxa to develop this new solution as part of the 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.”
Streamlining ‘digital payments for corporates’
Edmund Ng, chief executive officer for Doxa, also explained the efficiency of the system: “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.”
Philip Lim, regional head of commercial solutions at UOB, also 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.”
