iBanFirst Builds New Service for Importing Companies

FACTS

• The French FinTech iBanFirst proposes an international payment service for SMEs and launches a financing solution for importing businesses.

• Goals: increase importing SMEs’ agility and cash flow facilities.
• This option called Financement Import is available from iBanFirst’s e-payment platform.
• Customer companies may, for instance, apply for credit lines for:
  • Pay a deposit
  • Negotiate trade discounts with their providers
  • Respond to urgent orders
  • Anticipate production delays and stock management
• How it works:
  • This solution is activated within 2 weeks (vs 3 to 6 months on average for a regular financing circuit)
  • The FinTech relies on customers’ transaction volumes and amounts to define the best suited financing option
  • When the amount is released, the payment is also sent to the provider in his local currency and at the most relevant rate.

iBanFirst: Key Figures

• €25M raised
• +2,500 corporate customers
• 100,000 processed transactions (40,000 in 2018)
• Roughly €5Bn overall volume (incl. €2Bn in 2018)

CHALLENGES

• A unified financial platform. iBanFirst now proposes a comprehensive range of services assisting businesses with their international operations. This credit solution comes in addition to their existing payment processing offer, currency exchange, and invoice financing which supports foreign currencies.
• Challenging traditional banks. iBanFirst stands out with another added-value service which does not involve complex processes for their customers.

MARKET PERSPECTIVE

• iBanFirst recently raised €15M, and keeps enhancing their range of offers. This service is also in line with the extended approval they were granted, as the Second Payment Services Directive allows them to propose credit lines.
• Meanwhile, the British platform Ebury also features services for importing companies, including cross-border payments. As Brexit looms, their headquarters will soon be relocated to Brussels. They also plan to address two more European countries in 2019: more competition ahead for these two FinTechs.