Visa and Citi have announced the launch of Citi Optimized Pay, a unique card payments capability developed in collaboration with Cellulant. The solution, which leverages Tingg, Cellulant’s robust payment gateway, is designed to provide reliable cash flow solutions for small businesses across various sectors. Citi Optimized Pay aims to address challenges often faced by suppliers, including access to timely payments, varied payment options and improved cash flow.
According to the International Finance Corporation (IFC), Kenya’s Supply Chain Finance market is estimated to be worth $24.8 billion annually, representing 25.1% of the country’s GDP. Despite this significant market size, current supply chain finance solutions only meet between 7-10% of the demand, leaving a substantial gap that this new platform aims to fill*.
“We are proud to partner with Citi and Cellulant to launch Citi Optimized Pay. This solution will significantly enhance the efficiency of supply chain payments, providing businesses with reliable cash flow solutions. This is part of Visa’s efforts to empower businesses with the tools they need to thrive in today’s dynamic market,” said Chad Pollock, Visa East Africa Vice President and GM.
Suppliers often wait between 60 to 90 days for payments based on corporate supply chain policies, which can strain cash flows and hinder business operations. Using the Citi Optimized Pay platform, Citi corporate clients will be able to make payments from their commercial cards to their suppliers, who will have the ability to receive funds in the method of their choice, whether bank or mobile wallet. This will not only give Citi clients the ability to leverage corporate cards’ working capital benefit but will also enable suppliers to get paid faster.
David Li, MEA Cards Head, Citi, explained the impact of the provision of the platform, “Small business supply chain finance can be the lifeblood in an emerging economy such as Kenya. Providing access to a solution that drives the financial health of supply chains, will have far reaching effects that goes beyond the short-term impact of increased access to capital, by strengthening the local supply chain network and ultimately positively impacting the economy by promoting job creation and financial inclusion”.
Peter O’Toole Group CEO, Cellulant added, “We believe that streamlined payments are a powerful accelerator for business growth. Co-creating ‘Citi Optimized Pay’ with Citi and Visa aligns perfectly with our mission to deliver seamless, secure, and innovative payment solutions for businesses. By addressing critical supply chain financing needs, this solution strengthens supply chains for corporates while enabling SME suppliers to efficiently manage cash flow—unlocking growth opportunities across the entire value chain. This is the kind of innovation that drives long-term economic growth, and we are proud to be at the forefront of powering such solutions.”
Darren Parslow, Global Head, Visa Commercial Solutions said, “We are excited to introduce a transformative solution that will revolutionize the way businesses manage their supply chains. Our supply finance solution is designed to solve critical issues that both buyers and suppliers face: long payment cycles, cash flow constraints, and a lack of financing options. In a world where time is money, this solution provides the speed and flexibility needed to drive growth and efficiency. As we look to the future, we are constantly exploring new features that can bring even greater value to our customers. We are committed to continuously evolve the solution, adding more capabilities to help streamline the entire supply chain process”.
Key Features of the Solution:
- Business Payments Service Provider Platform: The platform offers an optimized onboarding process for both buyers and suppliers, enabling seamless access to invoice-linked payments.
- Multiple payout Options: Suppliers can access funds through various payment channels, ensuring timely and convenient cash flow.
- Enhanced Efficiency: The automated accounts payable value chain solution will streamline supply chain payments, expanding the business payments portfolio and increasing client offerings.
The Citi Optimized Pay platform offers several benefits specifically for small businesses:
- Improved Cash Flow: Small businesses can maintain a steady cash flow, which is crucial for day-to-day operations and growth.
- Reduced Payment Delays: The platform ensures that small businesses receive payments in a timely manner.
- Increased Financial Stability: With reliable and predictable cash flow, small businesses can better manage their finances, invest in new opportunities, and expand their operations.
- Access to Multiple Payment Channels: Small businesses can choose from various payment options that best suit their needs, making the process more convenient and efficient.
Also Read: Co-op Bank Unveils Visa Business Cards for SMEs and Corporates
