Cardless Enters Small Business Space With Alibaba Credit Card Partnership

Co-branded credit card FinTech Cardless is entering the small business space.

The move is designed to offer small- to medium-sized businesses (SMBs) financial products and rewards designed to improve their financial stability, the San Francisco-based company announced Thursday (Sept. 19).

“Entering the SMB space allows us to tap into a growing market and address the specific needs that traditional financial services often overlook,” Michael Spelfogel, Cardless president and co-founder, said in a news release. “Our experience across the airline sector has shown us how to tailor solutions effectively, and we’re now applying that expertise to help small and medium-sized businesses overcome their unique challenges.”

The company is launching this effort with Chinese eCommerce giant Alibaba as it prepares to roll out its first U.S. co-branded credit card.

“The decision made by Alibaba.com to partner with Cardless, over traditional financial giants, highlights the fintech’s unique value proposition and establishes the company as a leader in delivering innovative, flexible, and tailored financial solutions,” the company said.

According to the release, Cardless has also recently made a pair of “strategic hires”: Joe Wold, former head of credit cards for Wells Fargo, as Cardless’ head of partnerships, former Robinhood compliance chief Ailien Phan, who will take on that same role for Cardless.

“By leveraging its specialized expertise and innovative approach, Cardless is well positioned to grow its footprint in the SMB space, bringing impactful financial solutions that empower SMBs to navigate their most pressing challenges and fuel their growth,” the company said.

PYMNTS has been monitoring some of the challenges facing SMBs, including the persistent issue of delayed payments. It’s a problem that stems from “outdated processes and slow manual systems,” and is something that “threatens the stability and growth potential of SMBs,” PYMNTS wrote recently.

As the landscape changes, a PYMNTS Intelligence/American Express study, “End the Wait: SMBs and the Protracted Challenge of Delayed Payments,” poses a question: Could a new wave of digital transformation spell the end of this chronic delay?

Delayed payments aren’t just an inconvenience for SMBs, that report added, but a severe threat to cash flow and operational stability. Close to one-third of SMBs still rely on manual processes for ad hoc payments, which account for a substantial chunk of their revenue. And surveys have shown that 46% of SMBs without automated accounts receivable (AR) software consider delinquent payments their chief concern.